Natural rubber markets declining despite weeks of growth

LONDON—Key physical and future natural rubber markets declined in the two weeks to Nov. 5, reversing a positive trend established over the previous few weeks.

Osaka rubber contracts for March delivery were down 4.8 percent compared to Oct. 22, following a plunge in the Shanghai market. In Singapore, the front month contract for November deliveries saw a 3.7-percent decline over the two-week period.

Fears of slowing demand in China, rising inflation and whittling economic stimuli in Japan and elsewhere lowered confidence in the two weeks to early November.

Physical markets were mixed with latex on the Kuala Lumpur Stock Exchange and Kottayam RSS4 posting growth, helped by healthy supply/demand dynamics.

Kuala Lumpur SMR20, however, fell 4.0 percent compared to the two weeks before, impacted by lower ringgit and a decline in crude prices ahead of Iran's nuclear talks.

Shanghai SHFE ru2201: $2,312 (Yuan 14,750)/ton (Oct. 22) to $2,184 (Yuan 13,935)/ton (Nov. 5) – down 5.5 percent

• Osaka RSS3 nearby month: Yen230.9/kg to Yen219.6/kg—down 4.8 percent
• Singapore SGX TSR20: $175.7/100kg to $169.1/100kg—down 3.7 percent
• Kottayam RSS4: $228.36/100kg to $237.78/10kg—up 4.1 percent
• Kuala Lumpur SMR20: $178.85/100kg to $171.65/100kg—down 4.0 percent
• Kuala Lumpur Latex: $128.70/100kg to $130.81/100kg—up 1.6 percent