Rubber futures hit ‘multi-year highs’ on supply concerns, elevated oil prices

Tokyo – Natural rubber futures ended the first trading week of May higher across all major exchanges, reaching “multi-year highs” amid ongoing supply tightness, according to Japan Exchange Group (JPX).

Furthermore, the deadlock in the Middle East kept crude oil prices elevated, raising concerns about inflationary pressures, said JPX 11 May.

In Osaka, Japan, October rubber contract Japan closed nearly 1% higher for the week, while contracts on the Shanghai Futures Exchange (SHFE) and Shanghai International Energy Exchange (INE) rose 2.8% and 3.6%, respectively.

In Singapore, SICOM’s July delivery contract settled 2.5% higher week-on-week, as speculative buying increased.

According to JPX, Chinese commodity funds and speculators added fresh long positions after the Labour Day holidays, supported by expectations that demand for electric vehicles will outpace demand for internal combustion engine vehicles.

The shift to affordable EVs, JPX said, is linked partly to rising global petrol and energy prices, which could accelerate adoption trends.