Natural rubber markets remain buoyant amid Omicron, high demand

London – Key physical and futures natural rubber (NR) markets started the year strong with almost all Far East markets observed by ERJ registering price increases. Osaka rubber futures for June delivery hit a six-week high on 14 Jan, closing 2.4% higher than 3 Dec, as supply continued to remain tight amid winter season. Driven by anticipated growth in demand from China, Shanghai Futures’ weekly average for the most active rubber contract for May delivery was up 3.1% compared to 3 Dec.

Similarly, rubber futures in Singapore tracked growth with a 4.6% increase.  Physical markets, however, saw mixed reaction with Kottayam RSS4 posting a significant 14.4% decline over the six-week period, due mainly to resumed tapping activities in the country. While unseasonal rains restricted tapping in October and November, farmers have resumed tapping in India, leading to an oversupply. 

Furthermore, reports from the Indian Automotive Tyre Manufacturers’ Association suggest that demand from the truck & bus tire market fell 2% during October and the decline is expected to continue. 

In Kuala Lumpur, latex prices were down 2.0% amid reports of ‘excessive glove stocks.’

Market

3 Dec ’21 to 14 Jan ’22

Change

Shanghai SHFE ru2205:  

Yuan14,720/tonne to Yuan15,185/tonne

3.1%

Osaka RSS3: 

Yen240.6/kg to Yen246.5/kg

2.4%

Singapore SGX TSR20:

£175.2/100kg to £183.3/100kg

4.6%

Kottayam RSS4:  

£252.74/100kg to £216.27/100kg

-14.4%

Kuala Lumpur SMR20:

£178.49/100kg to £180.28/100kg

1.0%

Kuala Lumpur Latex:  

£141.00/100kg to £138.07/100kg

-2.0%




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