TOKYO—Natural rubber futures rose in the trading week ended Dec. 9, buoyed by relaxed COVID-19 measures in China and a cyclical rise in demand before the year-end.
Rubber futures reach two-month high on rising demand
In Japan, OSE rubber futures closed 6.1 percent higher week-on-week, while China's SHFE and INE futures increased 2.9 percent and 2.2 percent, respectively, Japan's JPX exchange said in its weekly report 12 Dec.
Similarly, Sicom futures in Singapore rose 3.5 percent, reported JPX, linking the rise partly to China's easing of COVID-19 restrictions despite rising infection cases.
Since Dec. 7, the Chinese government has allowed people to travel within the country without being required to produce a negative test result.
According to JPX, trading volumes on most exchanges fell from the previous week, reflecting sluggish trading activities before the year-end holidays.
Futures prices, it added, reached a two-month high as physical rubber demand grew ahead of the Chinese New Year on Jan. 22, 2023.
Prices also were generally supported by China's "solid stock market," which has held momentum for three consecutive weeks, as well as expectations of steady economic growth in the country, JPX noted.
SIGN UP FOR NEWSLETTERS
Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].