Natural rubber prices show signs of stabilisation

London – Natural Rubber prices have been following a positive trend since end of June, with markets showing clear signs of stabilisation since the sharp hikes and then reversals in first half of the year.

Trading in Far East markets in July and August was mostly influenced by a recovery in crude oil price, as well as the negative impacts of higher rubber inventories on regional futures markets.

On the Shanghai Futures Exchange, ERJ’s analysis found the closing price for RU1801 – the most heavily traded NR future –  at Yuan16,545/tonne on 30 Aug.

This was 7% above a level recorded at the end of July and 34% higher than an eight-month low of Yuan12,310/tonne noted in early June.

On Japan’s TOCOM, meanwhile, back-month prices for reference RSS3 materials remained flat at Yen216.1/kg, despite a dip observed in early August to Yen201.0/kg. The trends marked a significant stabilisation compared to the volatility of the first-half.

In Bangkok, spot prices for RSS1 grades on 31 Aug stood at $191.95/100kg showing 7% recovery from the previous month’s $179.35/100kg – again continuing a positive trend started in June. RSS3 in the meantime showed a similar 7% rise with prices standing at $188.50/100kg at close-of-business 31 Aug.

In Kuala Lumpur, prices for SMR-20 rose to $153.30/100kg, showing a steady recovery since June and a 5% increase since the beginning of August. Latex prices, meanwhile, showed a 2% drop compared to July at $128.20/100kg also as of 31 Aug.