LONDON—Key physical and futures natural rubber markets presented a mixed picture in the two weeks to Dec. 3 as the outbreak of the new COVID-19 variant, Omicron, impacted sentiment.
Osaka rubber futures, which hit a six-month high by Nov. 24, saw a reversal in trend at the end of last month on fears of lower demand and Omicron. Despite the negative development, rubber contract for May closed 4.6 percent higher on Dec. 3 compared to two weeks before.
In Shanghai, the most active rubber contract for May delivery fell 3.2 percent, while rubber futures in Singapore experienced a mild 0.5-percent decline.
Physical markets also saw a mixed reaction with Kottayam RSS4 posting a 3 percent increase in value amid short supply and increasing automotive demand.
In Kuala Lumpur, latex prices were up 5.5 percent as Omicron lifted the prospects of demand for rubber gloves.
