LONDON—Natural rubber markets presented a mixed picture in the two weeks to July 16, with futures traded on the Shanghai and SICOM exchanges gaining during the first half of the month.
On both exchanges, prices sharply increased between July 2 and 6, followed by sideways movements between July 6 and 15, said a market intelligence report by the Association of Natural Rubber Producing Countries (ANRPC).
ANRPC linked the sharp increase in rubber prices to the "better-than-expected" U.S. job data released on July 2, including the addition of 850,000 non-farm jobs in June.
The positive economic indicator in the U.S. outpaced market expectations and reflected an easing of labor-supply constraints, the association said.
In addition, China's overall imports increased 37 percent year-on-year to $230 billion in June, while exports rose 32 percent to $281.4 billion during the month.
"The jump in the trade served as a strong signal to the markets that Chinese factories have come back to life by making bulk purchases and sales," ANRPC added.
Furthermore, disruptions in supply of rubber gloves from Malaysian manufacturers, spiked demand from China-based suppliers, raising prices in Shanghai.
COVID-19-related movement restrictions in Malaysia's Klang Valley Region and a slowdown in gloves manufacturing in the country led prices of latex rubber to tumble in the Kuala Lumpur exchange during the two-week period.
In Osaka, where RSS3 futures closely followed the Shanghai and SICOM markets, a stronger yen against the dollar and other Asian currencies led to a decline in trading and prices.