3 Dec 2024
Supply concerns support price hikes as rainy season starts in major rubber producing countries
Tokyo – Natural rubber (NR) futures have strengthened amid improvement in market sentiment and Chinese stock-market recovery.
During the final trading week of November, NR pricing rose across all major exchanges, supported by fresh buying interest and short covering, Japan Exchange Group (JPX) reported 2 Dec.
In Osaka, Japan, OSE rubber contract pricing for delivery in April increased by 1.4% week-on-week amid light, fresh buying.
On China's SHFE and INE exchanges, NR futures rose by 3.4% and 6.0%, respectively, as commodity trading volumes increased.
Singapore’s SICOM exchange, meanwhile, registered a 5.5% week-on-week increase in NR futures for February 2025 delivery, driven by "new speculative buying interest."
Overall, JPX linked last week's gains to a recovery in Chinese stock values, anticipation of lower US interest rates, and a potential increase in US tariffs on Chinese imports.
Furthermore, flash floods and the rainy season in major rubber-producing countries, including Thailand, Malaysia, and Indonesia, further supported prices.
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