Rubber futures mixed as some producers move to restrict supply

Tokyo – Natural rubber (NR) futures depicted a mixed picture during the trading week ended 2 May as trading tensions eased between China and Russia.

In Osaka, Japan, OSE’s October rubber contract gained 2.6% week-on-week on light buying interest, reported Japan Exchange Group (JPX) 5 May.

In China, SHFE and INE rubber futures declined by 0.9% and 0.7%, respectively, amid active long liquidation.

In Singapore, SICOM’s active August contract rubber edged up 0.7% week-on-week, in subdued trading.

Overall, trading volumes were mostly lower due to the Labour Day holidays in China and Singapore.

Meanwhile, trade tensions between the US and China eased slightly after China exempted 131 US goods – valued at $40 billion – from its tariff list.

Equity markets, said JPX, closed higher on some optimism as China began evaluating a US proposal related to ongoing tariff negotiations.

In rubber-related news, Thailand's agriculture minister Narumon Pinyosinwat requested farmers to delay rubber tapping by one month to help support local prices, according to JPX.

The move, it said, is expected to temporarily remove 300 kilotonnes of NR from global supply amid pressure from recent US tariffs.