London – Weakening demand from the Chinese automotive sector and increased availability of supply seems to be snuffing out the recent recovery in natural rubber prices.
Continuing a trend noted in the previous week, the Shanghai Futures Exchanges on 12 June showed quoted-price falls of 4.4 percent to Yuan13,885/tonne for September contracts and of 3.4 percent to Yuan13,880 tonne for October contracts.
Another significant fall, of 4.9 percent, was posted for January 2016 deals, which ended trading on 12 June at Yuan15,860/tonne – confirming a trend that had not gone unnoticed by rubber traders outside of China.
In Tokyo, the Tocom exchange on 10 June showed a week-on-week decline of 2.7 percent in the back month (November) price for natural rubber to Yen234.7/kg, while near month prices were 3.1 percent lower at Yen221.9/kg.
On the Malaysia Rubber Exchange, SMR 20 registered a week-on-week fall of around 0.8 percent to $158.95/100kg, while Bangkok prices for RSS3 fell 0.7 percent over the same period to finish last week at $187.90/100kg.