After sharp hikes and reversals of the natural rubber (NR) prices, which the market was witnessing in first half of 2017, the rates now see improvements, potentially leading to stabilization.

A recovery in crude oil price drove sales in Far East markets in July and August. Moreover, the negative influence that higher rubber inventories had on local futures markets resulted in the expansion of commercial deals to Far East.

Reportedly, on August 30, the Shanghai Futures Exchange exhibited the closing price of CNY 16,545 per ton for the most popular NR future, RU1801. This figure is 7% higher than in the end of July and 34% more if compared with an eight-month low of CNY 12,310 per ton, as recorded in the beginning of June.

However, last-month prices for reference RSS substances saw no shifts on Japanese TOCOM preserving the price of JPY 216,1 per kg, however observers recorded a dip in the beginning of August to JPY 201,0 per kg. If to consider the volatility on the market in the first half, these trends display a palpable stabilization.

Bangkok has also been witnessing a stabilizing trend since June. As for August 31, spot prices for RSS1 grades demonstrated 7% recovery escalating to USD 191,95 per 100 kg, whereas in July the price was USD 179,35 per 100 kg. As for RSS3, it demonstrated 7% growth with prices estimated at USD 188,50 per 100 kg.

Positive trends for SMR-20, such as stable recovery since June and a 5% growth since early August, have been detected in Kuala Lumpur, as prices for SMR-20 increased to USD 153,30 per 100 kg. At the same time, latex prices declined at 2% when paralleled to the ones in July at USD 128,20 per 100 kg likewise as of 31 August.

Article source: Global Rubber Markets