TOKYO—Natural rubber futures surged across all major Far East markets during the trading week ended Oct. 13, according to the Japan Stock Exchange (JPX).
The hike was mainly driven by buying from funds and speculative traders, amid growing belief that China's economy "might be on the brink of recovery," the JPX said Oct. 16 in its weekly filing. Heavy rains in producing countries also pushed physical rubber prices higher, leading fund managers "rushing to buy rubber futures," it added.
Overall, these developments led to a "big rally" on local and international exchanges, with the March 2024 OSE rubber futures in Osaka, Japan, rising 11 percent week-on-week.
Also, OSE "front contracts" for October delivery soared 25 percent "as sellers struggled to buy back to close their positions due to scarce market liquidity and difficulties in preparing physical rubber."
In Singapore, SICOM's active January 2024 contracts rose 6.9 percent, with "notably high" weekly trading volumes, the JPX said.
On China's SHFE and INE exchanges, rubber futures prices rose 5.9 percent and 7.4 percent, respectively, compared to the week ended Sept. 29, before the country went on a week-long holiday.
