Rubber futures gain after 'multi-year lows' in October

Tokyo – Natural rubber futures closed higher during the trading week ended 4 Nov, amid short covering and new buying.

After hitting “multi-year lows” last month, markets gained following rumours that China would ease lockdowns and re-open the market, said a weekly report by Japan Stock Exchange JPX 7 Oct.

“[The news from China] spurred a rally in mainland stock markets, leading to an invert to the rubber price sentiment,” it said.

All major rubber futures prices increased week-on-week as Japan’s Osaka Exchange reported a 1.5% growth.

In China, SHFE saw an increase of 2% while INE reported a 4% rise on the prior week.

Singapore’s SICOM rubber posted a 5% growth week-on-week.

Rubber prices have been under pressure over the recent weeks, due mainly to concerns about the supply chain, global recessions, weaker China's demand for tires, the strong dollar.