Tokyo rubber futures stayed in an upward trend on the back of a weaker yen against the dollar during the week while Asian physical rubber markets followed suit. However, Shanghairubber futures moved against Tokyo rubber futures as investors were unimpressed with the lack of clarity in an economic reform plan from China’s leadership on Tuesday.
Global economic uncertainties are a major negative factor which still pressure investors, including market players on rubber futures, to stay on the sidelines. These have resulted in inactive physical rubber markets in the region even though demand for natural rubber as a whole remains steady, and its supply has not significantly increased compared with the same period last year.
It is expected that weak investor confidence will remain, and it will cause physical rubber markets in the region to be subdued in the coming weeks.
Source: IRCo
