Rubber futures drift lower on Far East markets

Tokyo – Natural rubber futures closed the trading week ended 30 June lower across all Far East exchanges, according to Japan Stock Exchange JPX.

Trading remained within “a narrow range”, while prices declined in a “generally subdued market sentiment, lacking fresh news catalysts”, JPX reported.

In Osaka, Japan, OSE rubber futures (RSS) dropped 1%, according to the Japanese exchanges weekly report, issued 3 July.

In China, meanwhile, the SHFE most active contract, for September delivery, fell by nearly 0.5% and while INE futures shed 1.1%.

In Singapore, rubber futures (TSR20) slipped by 0.5% amid active, yet shortened trading days.

JPX linked the continuing downtrend in rubber prices to concerns over China's slowing economy, global recession risks, and a robust US dollar.

Having reported contraction in its official manufacturing index in June, China “continues to face economic challenges”, said the report.

In addition, it noted, the Chinese economy has witnessed a decline in housing prices over the past two months.

Natural rubber futures price trends on main trading exchanges