Rubber markets ‘cautiously steady’ as trading picks up

Tokyo – Natural rubber (NR) markets have seen marginal increases in prices, as trading volumes start to ‘pick up’ following the extended holidays in early May.

Rubber futures closed the trading week ended 10 May higher across all major Far East exchanges as market sentiment remained ‘cautiously steady’, reported Japan Exchange Group (JPX) 13 May.

The week saw “a mix of fresh buying and short covering contributing to the slight uptick in prices,” JPX said in its weekly NR reporting.

In Osaka, Japan, rubber contracts for October delivery rose 1.1% week-on-week in quiet trading, as prices “remained range-bound and held steady”.

In China, Shanghai’s SHFE contracts for delivery in September rose marginally while INE contracts for June delivery rose by 0.8% week-on-week.

In Singapore, SICOM's active August-2024 contract closed marginally higher “in quiet and listless trading.”

Here, JPX said, prices remained “mostly sideways throughout the week, reflecting subdued market sentiment.”

In related news, producers in Southeast Asia are currently facing extreme hot weather conditions, with temperatures exceeding 40 degrees Celsius in some parts of Thailand.

The hot and dry weather pattern is anticipated to persist over the next few months, impacting production.

Furthermore, JPX said that uncertainty surrounding the Chinese economy is influencing the sideways movement in rubber prices.

However, the report noted that recent data suggests “a gradual recovery” in the Chinese economy, reflected by an uptick in Chinese stocks over the past few weeks.