Natural rubber makes strong start to 2023 as prices strengthen

London – Positive trends continued for natural rubber (NR) prices on Far East markets during the second trading trading week of the year, ended 13 Jan.

In Shanghai, the most highly traded rubber futures, for May delivery, closed nearly 1% higher at Yuan13,000 per tonne, Shanghai Futures Exchange (SHFE) data shows.

The edge-up in NR prices came as China prepares for a seasonal pick-up in demand ahead of the Lunar New Year, later in the month.

NR markets further strengthened on Beijing’s decision to ease Covid-19 travel restrictions on 8 Jan, the SHFE trading figures also indicate.

Improving business sentiment in China was as well reflected in a recent Reuters poll, which suggested a nearly 5% rebound in the powerhouse economy this year.

In Japan, meanwhile, Osaka RSS3 futures inched up 1.3% while futures pricing on Singapore's SICOM saw a sharper 2.7% rise over the trading week.

Physical markets were buoyed by higher demand from top consumers in China, while latex prices rose on reports of increasing number of Covid cases.

And, bucking a trend seen over the recent months, India’s Kottayam posted a positive development, as buying picked up amid low prices and ample supply of quality rubber.