Rubber futures hit ‘multi-year highs’ amid supply concerns, Iran disruption

Tokyo – Natural rubber futures ended the first trading week of June at “multi-year highs,” supported by speculative buying amid supply-side uncertainties.

The trading week ended 5 June also saw ongoing logistical disruptions stemming from the Middle East conflict impacting prices, said Japan Exchange Group (JPX) in an 8 June updte.

In Osaka, Japan, OSE’s November rubber contract settled 1.8% higher week-on-week in ‘moderate trading’.

“Strong overseas markets and short covering propelled prices to their highest level in 15 years,” said JPX, noting that weekly trading volume increased, while open interest declined “indicating light short covering.”

In Shanghai, China, meanwhile, SHFE and INE rubber gained 0.6% and 1.4%, respectively.

Trading activity increased across all major exchanges, with the SHFE market primarily driven by short covering, while the INE market saw fresh buying interest.

In Singapore, SICOM’s August contract closed slightly firmer, up 0.9% week-on-week, “supported by short covering and marking its highest level in nine years.”

Here, JPX said, weekly trading volume increased, while open interest declined, “indicating the closure of short positions.”