Rubber futures gain as recession fears ease

Tokyo – Natural rubber (NR) futures continued to strengthen for a second week as fears of a global recession has eased, Japan Exchange Group (JPX) has reported.

Over the trading week ended 16 Aug, NR futures closed higher across major Far East exchanges, driven by “optimism from lower interest rate prospects and stronger global equity markets.”

Weaker US dollar and ongoing supply concerns also supported the price increases, said JPX in its 19 Aug weekly NR report.

In Japan, OSE rubber future rose by 2.1% week-on-week due to short covering, while China’s SHFE and INE rubber contracts increased by 1.1% and 0.8%, respectively.

In the meantime, Singapore’s SICOM rubber ended 1.4% higher compared to the previous week, buoyed by both physical and speculative buying interest.

JPX linked the surge speculative activities to “supply shortages and expectations of a gradual recovery in the Chinese economy.”

In rubber-related news, India's Apollo Tyres plans to raise tire prices due to a shortage of domestic raw materials.