Rubber futures and physical rubber markets in Asia moved in a tight range during the week and ended slightly higher on Friday than the previous Friday. The movements of crude oil futures and a higher than expected Chinese GDP growth rate in the second quarter lent support to natural rubber (NR) prices on both markets in the region to improve marginally.
Most buyers were still on the sidelines with expectation of lower NR prices while NR supply was low due to Ramadan, and farmers refrained from tapping because of low prices. In addition, crude rubber inventories at Japanese ports fell from 22,514 tons as of 20 May to 19,599 tons as of 10 July, according to the Rubber Trade Association of Japan.
It is expected that NR prices will move in a narrow range in the coming week as market fundamentals and sentiment are likely to remain unchanged.
– IRCo
