Global Commodities Alternative Data and Insights

Helixtap

Helixtap collects, processes and distributes proprietary data, analyses and forecasts for the rubber, latex and automotive markets

Head of Content, Data & Research, Helixtap

Arusha Das

Head of Content, Data & Research

Commodities

<ul><li>Some speculative buying from China muddled up the rubber market dynamics as the market nears the long-term contract negotiation ensuing spike in the rubber spot prices, promoting the sellers to up their offers by around $70/mt despite limited demand. However, market participants remained divided on the real reason for the sudden surge in the prices.</li><li>A section of the market attributed this to speculative buying from China, while others believed this resulted from China's ongoing energy crisis stemming from the curbs on carbon-intensive industries. According to Helixtap data, Standard Thailand Rubber (STR) 20 price were up by 7% on a month on month basis and was assessed at US$1820/mt FOB Bangkok on October 19, 2021, while Standard Indonesia Rubber (SIR) 20 was assessed 3% higher, at US$1845/mt FOB Belawan Surabaya.Source: Helixtap"The market conditions are not realistic today," said a market source, adding that all the major international tire producers deferred their spot buying. Another market source attributed to some speculative buying from China which has created havoc in the market.</li><li>"There are talks that funds bought more than 200,000 tons at the Shanghai Future's Exchange," he added.</li></ul>

Some speculative buying from China muddled up the rubber market dynamics as the market nears the long-term contract negotiation ensuing spike in the rubber spot prices, promoting the sellers to up their offers by around $70/mt despite limited demand. However, market participants remained divided on the real reason for the sudden surge in the prices.A section of the market attributed this to speculative buying from China, while others believed this resulted from China's ongoing energy crisis stemming from the curbs on carbon-intensive industries. According to Helixtap data, Standard Thailand Rubber (STR) 20 price were up by 7% on a month on month basis and was assessed at US$1820/mt FOB Bangkok on October 19, 2021, while Standard Indonesia Rubber (SIR) 20 was assessed 3% higher, at US$1845/mt FOB Belawan Surabaya.Source: Helixtap"The market conditions are not realistic today," said a market source, adding that all the major international tire producers deferred their spot buying. Another market source attributed to some speculative buying from China which has created havoc in the market."There are talks that funds bought more than 200,000 tons at the Shanghai Future's Exchange," he added.

China's Speculative Buying Sends Rubber Market Reeling

Rubber Future SGX TSR20

China's Speculative Buying Sends Rubber Market Reeling