Rubber futures prices decline across Far East exchanges
JPX: Fresh selling and position adjustments ahead of Chinese New Year
Tokyo - Global rubber futures closed the trading week ended 2 Feb with declines across all major exchanges, Japan Exchange Group (JPX) reported.
The reverses were driven by concerns about sustained deflation in China and weak economic data, according to JPX’s latest weekly review.
With impacts on both stock markets and rubber demand, on the Osaka exchange OSE rubber futures fell 1.4% week-on-week.
In China, meanwhile, rubber futures on the SHFE and INE exchange fell 3.2% and 3.3%, respectively on the prior week.
On SIngapore’s SICOM exchange, futures came in 1.8% lower week-on-week “due to the liquidation of long positions."
The market saw both fresh selling and position adjustments ahead of the Chinese New Year holidays, added the JPX report.
In other rubber-related news, the Malaysian Rubber Board has implemented an incentives programme for rubber smallholders, reported JPX.
The support mechanism is triggered when the average monthly cup lump prices fall below RM 3.00/kg, with a fixed price of RM 0.90/kg for latex.
Looking at wider market developments, JPX noted significant declines in Chinese business indices, while the IMF revised China's economic growth downward to 4.6%.