Rubber markets bounce as China ends ‘golden week’ holiday

London – Far East natural rubber (NR) markets saw a rebound in prices in the two weeks to 8 Oct, as China ended its ‘golden week’ holiday on the day.

In Shanghai, the most active rubber contract for January delivery posted Rubber futures closed 7.7% up compared to 24 Sept, reaching a nearly two-month high. 

In Osaka, Japan, and Singapore rubber futures tracked a similar trajectory, reporting 9.9% and 6.8% growth respectively. 

Physical markets for latex and SMR20 on the Kuala Lumpur Stock Exchange also saw healthy growth over the two-week period, while Kottayam RSS4 posted a 1.4% decline amid increased supply. 

Reports of lower Covid infection rates, a sharp rise in crude oil prices and the devaluation of Far East currencies, including Japanese yen, positively influenced the price development.

However, demand from China remained strained amid an ongoing power crisis, which has severely impacted manufacturing in the country for more than two months. 

Shanghai SHFE ru2201:               Yuan 13,365/tonne (24 Sept) to Yuan14,395/tonne (8 Oct) – up 7.7%
Osaka RSS3 nearby month:         Yen201.0/kg to Yen221/kg – up 9.9%
Singapore SGX TSR20:                 $160.2/100kg to $171.0/100kg– up 6.8%
Kottayam RSS4:                             $230.60/100kg to $227.33/100kg– down 1.4%
Kuala Lumpur SMR20:                  $ 160.58/100kg to $169.56/100kg – up 5.6% 
Kuala Lumpur Latex:                     $119.57/100kg to $122.69/100kg– up 2.6%