Rubber futures firm on short-covering ahead of year-end slowdown

Tokyo – Natural rubber futures closed the second trading week of December higher across major exchanges, ahead of the anticipated year-end slowdown. 

In Osaka, Japan, "short-covering activity was evident" in RSS3 contracts, lifting May-2026 contracts 1.7% week-on-week despite quiet trading conditions, reported Japan Exchange Group (JPX) 15 Dec.

In China, fresh buying interest emerged in TSR20 contracts on both the Shanghai Futures Exchange (SHFE) and the International Energy Exchange (INE).

SHFE rubber futures gained 1.1% week-on-week, supported by short-covering, accompanied by a decline in open interest.

INE rubber prices rose 2.7%, while in Singapore SICOM's active March-2026 contract gained 1.6% week-on-week, supported by moderate trading volumes.

Official SHFE rubber inventories “increased sharply” during the week, rising by 12,324 tonnes to 105,542 tonnes, JPX said.

The stock build offset much of the seasonal drawdown recorded in mid-November, JPX added.

According to JPX, market participants expect trading volumes to ease as year-end holidays approach, keeping market sentiment “steady but cautious.”