Rubber futures subdued amid fears of weak Chinese economy

Tokyo – Natural rubber futures closed the trading week ended 14 July mostly lower across major Far East rubber exchanges, according to Japan Stock Exchange JPX.

The market experienced “limited trading activity, and prices remained within a narrow range”, said JPX in its weekly NR report 17 July.

In Osaka, Japan, OSE's newly active December contract rubber futures (RSS3) closed slightly lower in subdued trading.

Trading volume dropped by 4,780 contracts, while the open interest fell by 1,222 contracts from its recent peak, “indicating some liquidation transactions”, JPX added.

In China, the SHFE most active contract for September delivery posted a marginal decline week-on-week, while INE reported a 1.5% decrease.

Weekly rubber stocks on SHFE and INE recorded increases of 4,008 tonnes and 1,815 tonnes, respectively.

In Singapore, SICOM rubber futures for October delivery slightly increased amid active trading.

The trading volume, said JPX, surged by 10,418 contracts compared to the previous week, indicating “the initiation of new trading positions.”

The JPX report linked the prevailing “bearish” market sentiment to growing concerns about China's economy following the release of weaker CPI and PPI figures in June.

Additionally, China's trade balance for June fell below market expectations, indicating potential impacts on rubber demand.

On a positive note, JPX said, China's total vehicle sales in June rose by 240,778 units.

Natural rubber futures price trends on main trading exchanges