LONDON—Trading on natural rubber markets in the Far East continued under a cloud during October, despite some tentative signs of recovery in China.
On the Shanghai Futures Exchange, price for RU1801—the most heavily traded NR future—stood at about $2,052 per metric ton on Nov. 1.
This was up 7 percent from a low of $2,015 per metric ton in the first week of October, after futures prices had slumped more than 20 percent during September.
The mini-rally was not replicated on Japan's TOCOM exchange, where back-month prices for RSS3 materials continued to fall. The reference grade closed at $1.75 per kilogram for the week ending Oct. 25, down from $1.91 per kilogram last month.
In Bangkok, spot prices for RSS1 grades on Oct. 31 stood at $162.85/100kg—a 6.5 percent decline compared to $174.35/100kg on Sept. 29 and a sharp 14 percent drop compared to mid-September spot price $196.60/100kg. RSS3 followed the same downward trend over the same timeframe, finishing 3.5 percent lower at $164.80/100kg.
In Kuala Lumpur, prices for SMR-20 also fell to $137.65/100kg on Oct. 31, down 3 percent from $141.95/100kg on Sept. 29. This is despite a mid-October recovery, which was partly due to weaker ringgit and stronger oil prices. Latex prices saw a 7 percent decline compared to prices at end of September, closing at $111.25/100kg on Oct. 31.
The Malaysian Rubber Board linked the market trends to weak sentiment in the regional rubber futures markets. This reflected rising of NR production, anticipation of slower demand from buyers and concerns over China's economic performance.