TOKYO—Natural rubber futures pricing has maintained its upward momentum of recent weeks on data indicating that demand was outpacing supply.
Major NR markets reached a five-week high during the trading week ended Aug. 30, driven by growing concerns over supply shortages, according to the Japan Stock Exchange's (JPX) Sept. 2 report.
These concerns were heightened by the onset of the rainy season in producing countries, JPX said.
The bulling pricing trend was particularly evident in Osaka, Japan, where OSE rubber futures surged 7.4 eprcent week-on-week, fueled by strong overseas demand.
In China, meanwhile, pricing on the SHFE and INE exchanges gained 2.0 percent and 1.9 percent, respectively, supported by short-covering and fresh speculative buying.
Singapore's SICOM rubber also saw a 2.1-percent week-on-week growth, reflecting renewed buying interest, continued the weekly JPX review.
The gains came as the Association of Natural Rubber Producing Countries reported a modest 0.7-percent year-on-year increase in production, totaling 7.1 million metric tons in the first seven months of 2024.
In contrast, demand grew at a faster pace: rising by 1.2 percent year-on-year to 9 million tons over the same period, according to the ANRPC data.
According to JPX, heavy rain and flash floods in parts of Thailand were expected to impact tapping activities, further supporting the recent pricing price rally.
