Rubber prices crept up again on the international commodity exchanges on Tuesday (6/7/2021) after rebounding from the previous session from a bad position. Tocom and Sicom rubber prices climbed to their highest positions, while Chinese rubber prices on the SHEF exchange jumped to 2.5-month highs.
Investor sentiment grew stronger in response to the surge in crude oil prices that rose to a 3-year high after reports that OPEC+ had once again postponed a ministerial meeting on oil production policy. Major oil producers failed to reach a deal last week after the UAE blocked a deal by Saudi Arabia and Russia that would increase output by 2 million barrels per day in the second half of this year.
In addition, rubber market fundamentals are still affected by concerns over reduced demand from China as the world’s largest consumer of rubber and a decline in supply in major rubber producing countries such as Malaysia, Thailand, Indonesia and Vietnam. It was recently reported that natural rubber reserves in Malaysia until the end of April 2021 reached 259.35 thousand tons, down 7.9% compared to March 2021 and down 19.3% compared to the same period in 2020.
The closing price of Tocom rubber on the Osaka exchange for August 2021 contract at the close of this afternoon, rose 2.3 points or 1.04% to 223.7 yen per kg, the highest since June 30 after opening at 221.6 yen. .
The price of rubber on the Shanghai stock exchange (SHFE) for the September 2021 contract closed up 350 points or 2.9% to 13350 yuan. Similarly, on the Singapore – Sicom exchange, the contract that is currently being traded, namely the contract in October 2021, closed stronger by rising US$3.1 or 1.91% to position 165.1.
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