London – Natural rubber (NR) markets generally declined over the recent weeks, as crude oil prices weakened, and the Chinese government’s began to tackle soaring commodity prices. 

Almost all Far East markets monitored by ERJ over the two weeks to 21 May posted a decline, following a slight recovery at the beginning of the month. 

The most-active rubber contract for September delivery in Shanghai fell 5.3% during the two-week period, while RSS3 futures tracked a negative trajectory with a 1.6% drop. 

India's Kottayam was the only the market to post a positive trend during the period, helped by tight supply amid Covid lockdowns in the rubber province of Kerala. 

The declines came as the Chinese government’s took measures to crack down on “excessive speculation” in the commodity markets, which had pushed raw material prices up in recent weeks. 

In addition, rising Covid cases in Asia and the prospect of a deal between Washington and Tehran to remove sanctions on Iran led to a drop in oil prices, influencing natural rubber markets. 

Shanghai SHFE ru2109:          Yuan14,445/tonne (7 May) to Yuan13,675 (21 May) down 5.3%
Osaka RSS3 nearby month:    Yen255.5/kg to Yen251.3/kg – down 1.6%
Singapore SGX TSR20:           $173.3/100kg to $168.8/100kg – down 2.6%
Kottayam RSS4:                       $229.15/100kg to $235.20/100kg– up 2.6%
Kuala Lumpur SMR20:             $176.20/100kg to $168.50/100kg – down 4.3% 
Kuala Lumpur Latex:                $159.01/100kg to $156.72/100kg– down 1.4%