London – Trading on natural rubber markets in the Far East continued under a cloud during October, despite some tentative signs of recovery in China.
On the Shanghai Futures Exchange, price for RU1801 – the most heavily traded NR future – stood at Yuan13595/tonne on 1 Nov.
This was up 7% from a low of Yuan13350/tonne in the first week of October, after futures prices had slumped by over 20% during September.
The mini-rally was not replicated on Japan’s TOCOM exchange, where back-month prices for RSS3 materials continued to fall. The reference grade closed at ¥199.5.1/kg for the week ending 25 Oct, down from ¥217.7/kg on 27 Sept.
In Bangkok, spot prices for RSS1 grades on 31 Oct stood at $162.85/100kg – a 6.5% decline compared to $174.35/100kg on 29 Sept and a sharp 14% drop compared to mid-September spot price $196.60/100kg. RSS3 followed the same downward trend over the same timeframe, finishing 3.5% lower at $164.80/100kg.
In Kuala Lumpur, prices for SMR-20 also fell to $137.65/100kg on 31 Oct, down 3% from $141.95/100kg on 29 Sept. This is despite a mid-October recovery, which was partly due to weaker ringgit and stronger oil prices. Latex prices saw a 7% decline compared to prices at end of September, closing at $111.25/100kg on 31 Oct.
The Malaysian Rubber Board linked the market trends to weak sentiment in the regional rubber futures markets. This, it said, reflected rising of NR production, anticipation of slower demand from buyers and concerns over China’s economic performance.