Rubber prices have turned to the highest level in more than 3 months recently thanks to favorable factors of demand, supply and the impact of oil prices.
In the first months of 2021, rubber prices at key exchanges increased due to increased demand and market expectations for the world economic recovery after the 2020 epidemic.

However, then it continued to decline due to a shortage of shipping containers and countries such as India, South Korea and Thailand faced an increase in the number of people infected with the SARS-CoV-2 virus, reducing the expectation of the virus. hope for the economic recovery of the region.

By the beginning of October, the decline of rubber had a clear reversal and was maintaining the recovery momentum.

Specifically, at the Tokyo Commodity Exchange (TOCOM), the price of rubber at the time of the survey at 15:30 October 21 (Vietnam time) for October delivery in October 2021 recorded a level of nearly 225 yen/kg, up 41 yen/kg, or nearly 23% from the latest low in early September.

Trading movements of rubber prices on the Tokyo Commodity Exchange (TOCOM) (Unit: JPY/kg). (Source: Trading Economics)

On the Shanghai Commodity Futures Exchange (SHFE), the price of RSS3 rubber for November delivery was adjusted to 14,195 yuan/ton, up 200 yuan, equivalent to 1.43%. with the previous transaction.

The cause of the reversal of rubber is said to be the high oil price. Because oil price and natural rubber price usually have a positive relationship. Accordingly, the increase in oil price leads to an increase in the price of synthetic rubber, because crude oil is an input material for synthetic rubber production, and at the same time, the price of natural rubber has positive movements.

Recording oil price movements, on October 21, the price of Brent oil (considered as a benchmark for world oil prices) reached nearly $86/barrel, an increase of more than 67.8% compared to the beginning of the year.

According to Reuters, crude oil prices closed the session on October 20, rising to their highest level since October 2018, recovering from an early decline after a surprise drop in US crude inventories and storage at storage facilities. the nation’s largest hit a three-year low.

The main factor driving the rise in crude oil prices is due to tight supply, along with the Organization of the Petroleum Exporting Countries (OPEC) maintaining its plan to gradually increase supply instead of intervening to extract more oil for the future. market and as US demand increases.

In addition, sharing with the writer, Mr. Nguyen Quoc Anh, Chairman of the Ho Chi Minh City Rubber – Plastic Association, said that the world economy is recovering while the rubber raw materials supply markets such as Thailand and Indonesia. .. is still under the impact of the COVID-19 epidemic, leading to a shortage of rubber supply, thereby pushing up rubber prices.

In addition, the news that Japan’s new Finance and Economic Minister announced that he would take bold actions and policies to revive the economy, which was affected by the COVID-19 pandemic, is also considered weak. support factor for rubber prices to recover.