TOKYO—Natural rubber markets continued to gain for a fourth week in a row, amid "active and heavy trading volumes."
Rubber futures closed the trading week ended May 31 higher across all major Far East exchanges, with market sentiment remaining "bullish," the Japan Exchange Group (JPX) reported June 3.
In Osaka, Japan, OSE rubber contract for November delivery rose by 3.1 percent week-on-week in active trading, driven by some profit-taking following a week-long rally.
In China, SHFE and INE rubber prices were up 2.8 percent and 3.3 percent, respectively, with heavy trading volumes. Singapore's SICOM rubber closed 3.1 percent higher compared to the week before.
According to JPX, there was "notable speculative buying interest" for TSR20 futures in both the INE and SICOM markets, leading to a surge in open interest.
Furthermore, JPX said physical rubber prices for TSR20 continued to trade at an 8- to 9-cent premium over the near-month futures contract.
The surge in physical prices was linked to shortages in some producing countries and potential supply concerns from major suppliers such as Thailand and Indonesia.
In particular, JPX said the supply concern was due to the adoption of the European deforestation regulation (EUDR), which is set to take effect by the end of the year.
In Thailand, for instance, the physical sheet rubber RSS3 traded at a 12-year high of $2.65/kg (THB 96.66/kg) as consumers started to seek EUDR-compliant rubber.
In other related news, China's PMI Manufacturing dipped to 49.5 from the expected 50.5, sparking concerns about the state of the country's economic recovery.