Rubber markets dip as Covid, supply chain woes continue

London – Natural rubber (NR) markets observed a decline in prices in the second half of August, despite favourable supply and demand conditions across Asian markets.

In Shanghai, the most active rubber contract for January delivery posted a 6.4% decline over the two weeks to 27 Aug, while rubber futures in Osaka and Singapore posted 7% and 5% drops respectively.

Physical markets also witnessed a reversal in trend with Kottayam RSS4 posting a sharp 40% drop over the two-week period.

Kuala Lumpur latex was slightly up as demand for rubber gloves continues to remain strong.

Rubber markets were weak amid anticipated growth in demand from major markets such as China, the US and Europe.

Delays in imports and the resurgence of Covid-19 cases globally, however, dampened demand in the short term.

Shanghai SHFE ru2201:              Yuan14,755/tonne (13 Aug) to Yuan13,810/tonne (27 Aug)– down 6.4%
Osaka RSS3 nearby month:         Yen222.6/kg to Yen205.5/kg –down 7.6%
Singapore SGX TSR20:                 $173.8/100kg to $164.8/100kg – down 5.1%
Kottayam RSS4:                             $238.56/100kg to $142.11/100kg– down 40.4%
Kuala Lumpur SMR20:                  $174.31/100kg to $170.92/100kg – down 1.9%%
Kuala Lumpur Latex:                     $125.77/100kg  to $126.82/100kg  – up 0.8%