Fast-paced natural rubber prices recovery

Image source: http://rubberasia.com/

Image source: http://rubberasia.com/

Natural rubber (NR) prices are profoundly important for tire recyclers, as rubber powder prices largely depend on natural and synthetic rubber prices. Below, we quote European Rubber Journal to provide you with up-to-date news with regard to recent NR price developments.

Two month ago, natural rubber prices started recovering and ever since, this recovery has been gaining momentum. According to the European Rubber Journal, a closer look at Asian market trends corroborates confidence in a longer term and persistent recovery.

On the Shanghai Futures Exchange (SHFE), the closing price of the NR future 1701, which is the most heavily traded, was CNY 15.116 per ton on the 9th of November, and yet it was 5.1 percent higher about one month ago, in the middle of October.

Meanwhile in Bangkok, prices for the grades RSS1 and RSS3 between the 7th of October and the 9th of November appreciated by 5.8 and 5.0 percent (USD 182.05 and USD 177.80 per 100 kg) respectively. Prices for SMR-20 in Kuala Lumpur increased 8.0 percent, i.e. to USD 158.80, over the same period of time.

In Japan, similar appreciation was spotted – a benchmark material RSS3 rose by 4.3% from the 5th of October to the 2nd of November (JPY 178.00 per kg).

Nikkei’s news service corroborated this by reporting the natural rubber prices are at six months high. Earlier last week, contract prices for rubber sheets RSS3 delivered in April 2017 trade at JPY 189.80 per kg.

According to the Japanese report, the gains in natural rubber prices are linked to a knock-on effect from rising butadiene prices, which, in turn, helped increase synthetic rubber prices. Also, report claims that other factors included speculative activities on the SHFE, which built up car sales in China and concerns about natural rubber output in Thailand.

Article source: European Rubber Journal

 

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