London – Natural rubber (NR) markets have seen a sharp decline from the highs of February, due, in part, to a new wave of Covid-19 in India and market uncertainty.
All Far East markets monitored by ERJ over the eight weeks to 23 April posted declines, reversing a strong uptrend registered in February.
The most-active rubber contract for September delivery in Shanghai fell 12% while RSS3 futures for near-month delivery in Japan dropped 13% during the period.
Other markets, including Kuala Lumpur and Singapore also saw price declines, while latex prices fell despite soaring demand from the gloves industry.
A devastating wave of Covid in India, a slowdown in China’s economic recovery and the strengthening of US dollar under president Joe Biden’s fiscal stimulus package have impacted the price trend in recent weeks.
Shanghai SHFE ru2105 Yuan16,030/tonne (26 Feb) to Yuan14,105/tonne (23 April) – down 12%
Osaka RSS3 nearby month: Yen273.8/kg to Yen237.1/kg (Near-month delivery) – down 13.4%
Singapore SGX TSR20 $177.90/100kg to $167.30/100 KG – down 5.9%
Kottayam RSS4 $236.88/100kg* to $217.60/100kg – down 8.1%
Kuala Lumpur SMR20 $184.65/100kg to $166.65/100kg – down 9.7%
Kuala Lumpur Latex $170.47/100kg to $149.98 /100kg – down 12%
*Kottayam market was closed 26 Feb and the figure reflects prices on 1 March