Rubber futures rise on speculation around Chinese recovery

Tokyo – Natural rubber (NR) futures closed the trading week ended 8 March with mostly higher prices across major exchanges, helped by "late Friday rallies."

Gains were fuelled by trading from Chinese speculative funds anticipating positive economic data from China, reported Japan Exchange Group (JPX).

In Osaka, Japan, OSE rubber surged 4% week-on-week while in Shanghai, China, SHFE rubber futures rose 0.6% amid active trading, said the 11 March review.

In Singapore, SICOM rubber prices closed 1.7% higher than the week before, the JPX added in its weekly trading  report.

China’s INE exchange slightly bucked the trend, however, rubber futures closing “marginally lower” there compared to the week before.

According to JPX, buying interest was stronger in the RSS3 market than in the TSR20 market during the trading week.

“Concerns regarding the wintering season and lower production in Thailand continued to influence market sentiment, potentially pushing rubber prices higher,” it added.

Furthermore, China reported that its February consumer price index (CPI) rose by 0.7%, beating market expectations of 0.3%.

The growth marks the first CPI rise in China since August 2023, signalling “positive signs of economic recovery.”