Natural rubber futures gain in September

Kuala Lumpur – Natural rubber (NR) prices generally improved during the month of September, at varying degrees, across different grades and different physical markets. 

Among the various grades and markets, RSS3 grade at FOB Bangkok glared during September by at 13.8% above the previous month's average, said the Association of Natural Rubber Producing Countries (ANRPC) in its latest monthly update 14 Oct.

Compared to the average prices in August, the average prices during September were up 5.9% for STR20 at FOB Bangkok, 4.7% for SMR20 at FOB Kuala Lumpur, and 3.5% for RSS4 at Kottayam local market in India, ANRPC said.

At the Shanghai Futures Exchange, rubber futures sharply fell during the first half of September, but almost recovered during the second half of the month.  

Contracts for delivery in January 2021 fell by 4.9% between 2-11 Sept, but recovered 3.6% through to the end of the month.

According to ANRPC, the increasing risk of a Covid-19 resurgence as well as higher crude prices impacted NR prices negatively.

However, prices improved as Manufacturing Purchasing Managers’ Index (PMI) rose to 51.5 in September and domestic automotive sales increased 7.4%.

In addition, a ‘reported acute shortage’ of rubber in Thailand, due to the absence of skilled labourers and bad weather, as well as falling stocks in Shanghai warehouses contributed to the price rises. 

In Singapore, the prices of the TSR20 contracts for delivery in December showed sideway trends by hovering around $138.00/100kg while in Japan, RSS3 contracts for delivery in January widely varied during the month.

At the Osaka Exchange, prices fell 11.6% between 2-9 Sept, but bounced back by rising 9.9% by the end of the month.