Natural rubber futures rally on supply concerns

Tokyo – Natural rubber (NR) futures closed the final trading week of February "sharply higher" as traders returned from the lunar new year holidays.

Rising concerns over potential supply shortages, as wintering begins in the Northern Hemisphere, triggered "strong speculative buying by commodity funds," Japan Exchange Group (JPX) said in its 2 March weekly NR report.

“Firm end-user demand” and escalating geopolitical tensions in the Middle East, which could disrupt logistics and supply chains, further encouraged fresh long positioning.

In Osaka, Japan, the OSE July 2026 contract closed 4.3% higher week-on-week in what JPX described as “moderately active trading”.

The rally, it said, was driven by fresh buying interest and stronger price action in Chinese markets following the holiday break.

In Shanghai, China, SHFE and INE rubber futures gained 4.3% and 3.9%, respectively, in active trading.

According to JPX, “market rumours” suggest commodity fund managers accumulated more than 500,000 tonnes equivalent of rubber derivatives across SHFE and INE during the week.

SICOM’s active May 2026 contract advanced 3.9% week-on-week.

“Strong overseas arbitrage buying, coupled with firm physical demand, pushed prices to their highest level in one year, marking the strongest level since 14 March 2025,” JPX said.