Rubber futures gain across major markets
OSE says planned lifting of lockdowns in China improves market
Osaka, Japan – Rubber futures prices closed the week higher on 20 May across all major rubber exchanges.
Most prices gained due to short covering amid lighter trading activities, said Osaka Stock Exchange (OSE) in its weekly rubber report covering the week 16-20 May.
China's planned lifting of the Shanghai lockdown on 1 June slightly improved market sentiment.
Also contributing was the rising demand for cars, as vehicle sales rose 27% in the first two weeks of May compared to April.
“The prolonged lockdown in China and following poor vehicle sales had given rubber prices a downside pressure to the level of October 2020,” OSE explained.
Osaka rubber futures closed the week 2.2% higher, while Chinese-based markets SHFE and INE were up 2.2% and 3.2%.
In Singapore, SICOM rubber gained nearly 4% with robust physical demand and consumers' willingness to pay premiums for near-month delivery.