Natural rubber futures ‘mostly higher’ on short covering, crude surge

Tokyo — Natural rubber futures ended the second trading week of March “mostly higher” across major exchanges, supported by short covering and rising crude oil prices amid geopolitical tensions in the Middle East.

Over the week ended 13 March, prices increased on three of the four major exchanges, while Singapore’s SICOM market edged slightly lower, according to Japan Exchange Group (JPX).

In Osaka, Japan, the OSE August 2026 rubber contract closed 0.7% higher from the previous week in ‘relatively quiet trading.’

In China, SHFE rubber futures rose 2.0% week-on-week, while INE rubber contracts gained 1.0%, JPX reported.

Meanwhile, SICOM’s active June 2026 contract slipped 0.2% week-on-week, trading within a relatively narrow range during the week.

According to JPX, prices were supported partly by a sharp rise in crude oil prices linked to the ongoing war in the Middle East.

Market sentiment was also influenced by concerns over potential supply-chain disruptions after Iran closed the Strait of Hormuz, a key shipping route through which around 20% of global crude oil flows.

In addition, the market is entering the wintering season in the Northern Hemisphere, affecting output in major producing countries including Thailand, Vietnam, Cambodia and parts of China, JPX said.