Rubber markets retreat on fears of slowing demand

London – Key physical and futures natural rubber (NR) markets declined in the two weeks to 5 Nov, reversing a positive trend established over the previous few weeks.

Osaka rubber contracts for March delivery were down 4.8% compared to 22 Oct, following a plunge in the Shanghai market. In Singapore, the front month contract for November deliveries saw a 3.7% decline over the two-week period.

Fears of slowing demand in China, rising inflation, and whittling economic stimuli in Japan and elsewhere lowered confidence in the two weeks to early Nov.

Physical markets were mixed with latex on the Kuala Lumpur Stock Exchange and Kottayam RSS4 posting growth, helped by healthy supply/demand dynamics. 

Kuala Lumpur SMR20, however, fell 4.0% compared to the two weeks before, impacted by lower ringgit and a decline in crude prices ahead of Iran’s nuclear talks.

Shanghai SHFE ru2201:               Yuan14,750/tonne (22 Oct) to Yuan13,935/tonne (5 Nov) – down 5.5%
Osaka RSS3 nearby month:         Yen230.9/kg to Yen219.6/kg – down 4.8%
Singapore SGX TSR20:                 $175.7/100kg to $169.1/100kg – down 3.7%
Kottayam RSS4:                             $228.36/100kg to $237.78/10kg – up 4.1%
Kuala Lumpur SMR20:                  $178.85/100kg to $171.65/100kg –down 4.0%
Kuala Lumpur Latex:                     $128.70/100kg to $130.81/100kg – up 1.6%