Natural rubber futures weaken as trading volume declines

Tokyo – Natural rubber (NR) futures pricing has remained under pressure amid lower trading volumes and concerns over weak economic data from China

All major exchanges monitored by Japan Exchange Group (JPX) reported week-on-week declines during the trading week ended 5 July.

In Osaka, Japan, OSE’s December-2024 contract dropped 1.3% week-on-week in quiet trading, JPX reported 8 July.

Both trading volume and open interest decreased, indicating “light liquidation and little buying interest,” said JPX, noting ‘low sentiment’ despite the weakening Japanese yen.

In China, SHFE and INE dropped by 1.5% and 1.2%, respectively while Singapore’s SICOM rubber futures fell by 2.3% due to “a lack of physical demand and long-position liquidation.”

JPX linked the decline in trading volume to “market uncertainty and the lower trading demand” across all exchanges.

“Weaker economic data from China and the continued decline in the Chinese stock market are putting pressure on rubber prices,” it added.

According to JPX, China's Manufacturing PMI in June was 49.5, unchanged for the past three months, indicating 'economic stagnation'.