Rubber futures dip as Chinese demand wanes
Far East natural rubber markets see week-on-week decrease amid selling pressure
Tokyo – Natural rubber (NR) futures closed lower across all major Far East rubber exchanges during the trading week ended 26 May, according to Japan-based JPX.
Rubber prices faced selling pressures during the week amid concerns about slower rubber demand from China, said the exchange in its weekly trading review.
In Osaka, Japan, RSS3 rubber futures for September delivery dropped 1.5% week-on-week to Yen205.8 amid light trading, JPX reported 29 May.
In China, SHFE RSS futures for September delivery fell 3.1% to Yuan11,790 while INE futures (July delivery) fell 2.1% to Yuan9,475.
On Singapore’s SICOM exchange TSR20 futures for September delivery dipped 2% to US$c132.7 amid selling pressures by producers and speculators.
The declines were linked to concerns about China's economic recovery, which JPX said put “downside pressures” on rubber prices.
Particularly impacting market sentiment was a 12% month-on-month drop in Chinese vehicle sales recorded for the month of April.
"China's April vehicle sales fell 292,326 units to 2,158,704 units, and Chinese tire consumers showed lower rubber demand," reported JPX.