NR prices gain amid supply woes

London – Natural rubber (NR) prices have shown signs of improvement over the recent weeks, on the back of supply concerns as well as the rising crude oil prices and a weak US dollar.

All Far East markets monitored by ERJ over the two weeks to 7 May posted growth, following a steady decline over the months of March and April. 

The most-active rubber contract for September delivery in Shanghai rose 2% during the two-week period, while RSS3 futures tracked a positive trajectory with a 7% increase. 

The gains are linked to short-term effects of supply constraints, due mainly to the month-long Ramadan period (ended 12 May). 

In addition, the fungal leaf diseases across Indonesia, Thailand, and Malaysia, have impacted supply, the Association of Natural Rubber Producing Countries reported 7 May.

Shanghai SHFE ru2109:           Yuan14,105/tonne (23 April) to Yuan14,445/tonne (7 May) up 2.0%
Osaka RSS3 nearby month:     Yen237.1/kg to Yen255.5/kg – up 7.0%
Singapore SGX TSR20:            $167.30/100kg to $173.3/100kg – up 3.5%
Kottayam RSS4:                       $217.60/100kg to $229.15/100kg– up 5.3%
Kuala Lumpur SMR20:             $166.65/100kg to $176.20/100kg– up 5.7% 
Kuala Lumpur Latex:                $149.98 /100kg to $159.01 – up 6.0%