Tokyo – Natural rubber (NR) futures continued to gain for the third week in a row amid concerns over supply constraint in several NR producing countries.
NR markets closed the trading week ended 23 Aug higher across all major rubber exchanges, supported by rising prices for synthetic rubber and concerns of production shortfall.
“This prompted speculators to take long positions, leading to a rise in prices,” Japan Exchange Group (JPX) reported 26 Aug.
In Osaka, Japan, OSE rubber saw a significant rally, increasing 6.1% week-on-week, while China’s SHFE and INE rubber prices increased by 1.3% and 1%, respectively.
In Singapore, SICOM rubber gained 2.4% compared to the week before, supported by fresh speculative and physical buying interest.
Additionally, JPX said the onset of the rainy season is contributing to the bullish sentiment, as it could impact tapping activities in some key producing regions.
Furthermore, markets were also supported by the anticipated decline in global interest rates which is contributing to the weakening of the US dollar.
