Rubber futures strengthen on positive signals from China, US

Tokyo – Natural rubber (NR) futures saw a trend reversal in the trading week ended 17 May, as Far East markets reported substantial gains in active trading.

All major exchanges reported “strong speculative and consumer buying, with increased trading volumes,” Japan Exchange Group (JPX) reported 20 May.

In Osaka, Japan, OSE rubber futures rose by 5.1% week-on-week, while Chinese exchanges SHFE and INE saw gains of 3.8% and 4.0%, respectively.

In Singapore, SICOM rubber futures closed 4.2% higher as speculators added long new positions.

The “firmer sentiment,” said JPX, was supported by stronger global equity markets, driven by the prospect of lower interest rates in the US, and optimism about China's economic recovery.

In April, China's total vehicle sales eased slightly month-on-month, settling at 2.36 million units, but remained 10% above the prior-year level.

The country is also issuing long-term 20- to 50-year government bonds worth Yuan1,000 billion (€127 billion) to stimulate its sluggish economy.

Uncertainties remain, however, not least due to US plans to raise tariffs on a broad range of imports from China, including EVs, batteries, latex gloves and medical devices.