Prices are strengthening on optimism about China’s recovery and supply shortages in Indonesia
TOKYO – World natural rubber (NR) futures closed higher on all major exchanges for the trading week ended April 21, Japan’s JPX reported,
The gains were helped by optimism about the economic recovery in China, which posted “faster-than-expected” GDP growth of 4.5% in the first quarter.
In addition, commodity shortages observed in Indonesia pushed NR prices higher, as noted by JPX in its April 24 weekly trading report.
On Japan’s Osaka Stock Exchange, supply contract prices edged up 0.3% to 210.1 yen in September amid moderate trading activity.
Sentiment was more positive in China, where SCR/RSS futures on the SHFE rose 2.3% on the week to CNY11,980 in September.
Also in China, TSR futures prices for July on the INE exchange were CNY 9,765, also up 2.3% from the previous week’s close.
In Singapore, SGX SICOM delivery contracts edged up to $137.2 in July as trading volume rose over 50% to 21,588 contracts.
While futures markets remained stable, demand in physical markets was strong, the Japan Stock Exchange report continued.
In Singapore, physical rubber traded at a $0.7 premium to SICOM’s front-month futures price, “making the futures curve almost flat,” JPX said.
Some manufacturers, she added, are struggling to secure enough cup nuggets/latex for their monthly output, which has pushed rubber prices higher over the past two weeks.
This article is only available to subscribers – subscribe today
Subscribe for unlimited access. A subscription to the European Rubber Journal includes:
- Every issue of the European Rubber Journal (6 issues) including Special Reports & Maps.
- Unlimited access to ERJ articles online
- Daily email newsletter – the latest news straight to your inbox
- Access to the online archive of the ERJ
Comments are closed.