NR futures gain amid supply concerns, optimism about Chinese recovery

Tokyo – Natural rubber (NR) futures prices have picked up following a week of subdued pricing in the aftermath of uncertainties regarding the implementation of the EU Deforestation Regulation (EUDR).

During the trading week ended 18 Oct, pricing closed higher across all major Far East exchanges, influenced by ongoing concerns about supply constraints, Japan Exchange Group (JPX) said 21 Oct.

In addition, strong vehicle sales in China and renewed optimism about a potential Chinese economic recovery further boosted prices, according to the weekly JPX review.

In Osaka, Japan, NR contract prices for delivery in March 2025 increased by 2.1% week-on-week, driven by light short covering, said the market watcher.

In China, meanwhile, NR futures prices on the SHFE and INE exchanges increased by 1.2% and 3.8%, respectively, with a mix of fresh buying and short covering.

On Singapore's SICOM exchange, active January-2025 contracts closed the week 1.1% higher under light, fresh buying interest.

China's vehicle sales in September increased by 355,663 units, up 14.5% month-on-month, reaching a total of 2,808,921 units, on stronger passenger car sales.

Shanghai INE weekly rubber warehouse stocks fell sharply over the past two weeks to 116,626 tonnes, marking a decline of 13,708 tonnes, the report continued.

In related rubber news, Cambodia exported 248,535 tonnes of rubber between January and September, generating $394 million, up 18% year-on-year, JPX also noted.