During the week of 7 – 11 September 2015, IRCo’s Daily Composite Price (DCP) rebounded from its lowest level in more than 6 and a half years at 125.78 US cents/kg on Friday, 4 September to 131.85 US cents/kg on 11 September 2015.
The main positive factors which contributed to the improvement in NR prices were as follows:
i. Improvement of NR prices on futures markets particularly in TOCOM and SHFE supported by the improvement of investors’ sentiment on hopes of improved demand from China and Japan
ii. The improvement of share prices in Japan equity market supported by news on the Japanese Government plan to reduce its cumulative corporate tax by 3.3% within 2 years starting from 2016
iii. The weakening of Japanese Yen as against the USD provided some support to NR price on TOCOM which is quoted in Japanese Yen
It is expected that NR prices in futures and physical markets would mainly influenced by non-rubber factors such as the outcome of U.S. Federal Open Market Committee (FOMC) meeting which is scheduled from 16 – 17 September 2015 as well as the development of global equities, commodities and currencies markets.
