Rubber futures reverse in markets “lacking clear direction”
NR futures closed the last trading week down across all major exchanges, reports JPX
Tokyo – Global natural rubber (NR) futures closed the trading week ended 25 Oct lower across all major exchanges, according to the latest market report from Japan Exchange Group (JPX).
Reversing a prior-week pick-up on Japan’s Osaka exchange, OSE rubber futures closed 5.5% down week-on-week “amid thin market conditions,” said the 28 Oct review.
In China, NR futures recorded declines of 0.7% and 0.4% respectively on the SHFE and INE exchanges amid “speculative selling and long liquidations within a narrow trading range.”
On Singapore’s SICOM exchange, meanwhile, rubber futures fell by 2.0% as traders adjusted positions and took profits, according to the weekly report.
Summarising the trends overall, JPX said “the market lacked news and clear direction, resulting in prices fluctuating within a tight range throughout the week. Traders remained cautious, leading to reduced trading volumes in most exchanges.”
Among news developments that could influence NR prices, JPX noted that the US had raised anti-dumping duties on truck and bus radial tires from Thailand, imposing a 48.39% duty on Bridgestone and a 12.33% rate on other tire makers.
Meanwhile, it added, Thailand has suspended its bi-weekly auctions of EUDR-compliant rubber following the EU's decision to defer its regulation implementation by 12 months.
JPX also noted new efforts to stimulate China’s struggling economy: the People’s Bank of China cutting one-year and five-year loan prime rates by 25 basis points to 3.10% and 3.60% respectively.
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