Rubber futures continue to gain amid supply concerns

Tokyo – Natural rubber (NR) futures continued to gain for the third week in a row amid supply concerns and China’s economic stimulus introduced last week.

The trading week ended 27 Sept saw “sharp” rises in pricing, driven by robust buying from China's commodity funds and speculators, reported Japan Exchange Group (JPX) 30 Sept.

In Osaka, Japan, OSE rubber contracts for February 2025 delivery surged 6.7% week-on-week, while China’s SHFE and INE futures were also up 2.9% and 2.0%, respectively.

In Singapore, SICOM’s active December 2024 contract gained 3.4% week-on-week amid strong physical and speculative demand.

Market sentiment during the week was positive as China's central bank cut its ‘reserve requirement ratio’ by 0.5 percentage points, releasing approximately $142 billion for new lending.

The agency also lowered the 7-day repo rate by 0.2 percentage points to 1.5%.

The “larger-than-expected” stimulus, according to JPX, ignited a rally in both equities and commodities.

Meanwhile, concerns over rubber supply and recent flooding in key producing regions further supported price gains.