Rubber futures ‘slightly firmer’ as market sentiment improves

Tokyo – Natural rubber (NR) futures posted modest gains during the first trading week of May, recovering slightly after two months of subdued pricing influenced by ongoing global trade tensions.

According to the Japan Exchange Group (JPX) on 12 May, key Far East rubber markets closed the week ended 9 May “slightly firmer” amid fresh speculative buying.

The shift in sentiment followed renewed US-China tariff discussions reportedly held in Geneva earlier in the month.

JPX noted that buying interest also increased on China’s Shanghai Futures Exchange (SHFE) and the International Natural Rubber Exchange (INE) after the People's Bank of China lowered its 7-day reverse repurchase rate by 10 basis points to 1.4%.

In Osaka, the OSE October rubber contract rose 1.4% week-on-week, despite light trading during Japan’s shortened Labour Day holiday.

Gains were supported by a weaker yen and firmer overseas markets, although both trading volume and open interest saw slight declines.

Meanwhile, in Shanghai, SHFE and INE contracts ended the week up 0.4% and 1.9%, respectively.

The increases followed monetary easing by China’s central bank and additional measures aimed at injecting an estimated $139 billion into the financial system.

In Singapore, the August rubber contract gained 1.4% from the previous week, trading in what JPX described as “continued quiet and range-bound conditions.”