Rubber markets gain despite slowing demand, Covid concerns

London – Rubber prices in major Far East markets continued strong over the two weeks to 10 June, although the uptrend was hampered by the resurgence of Covid and slowing demand in the latter part of the period.

Compared to 27 May, rubber futures closed higher in all major rubber exchanges on 10 June, with Japan’s Osaka Exchange closing 6.5% up compared to two weeks before.

The OSE gains slowed down on 7 June when the market snapped after an eight-day rally, tracking Shanghai losses. Data that showed household spending and wages shrinking in Japan in April also weighed on investor sentiment.

Despite closing 1.2% higher than two weeks before, the SHFE rubber futures were sluggish on slowing demand from factories and the resurgence of Covid in Beijing and Shanghai.

In physical markets, fewer rains and floods that led to the uninterrupted supply of NR weighed on the market, although prices closed slightly higher than two weeks ago.