LONDON—Key physical and futures natural rubber markets started the year strong with almost all Far East markets registering price increases among those the European Rubber Journal observed.
Osaka rubber futures for June delivery hit a six-week high on Jan. 14, closing 2.4 percent higher than Dec. 3, as supply continued to remain tight amid the winter season.
Driven by anticipated growth in demand from China, Shanghai Futures' weekly average for the most active rubber contract for May delivery was up 3.1 percent compared to Dec. 3.
Similarly, rubber futures in Singapore tracked growth with a 4.6-percent increase.
Physical markets, however, saw mixed reaction with Kottayam RSS4 posting a significant 14.4-percent decline over the six-week period, due mainly to resumed tapping activities in the country.
While unseasonal rains restricted tapping in October and November, farmers have resumed tapping in India, leading to an oversupply.
Furthermore, reports from the Indian Automotive Tyre Manufacturers' Association suggest that demand from the truck and bus tire market fell 2 percent during October and the decline is expected to continue.
In Kuala Lumpur, Malaysia, latex prices were down 2 percent amid reports of "excessive glove stocks."
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