The Japan Rubber Futures Weekly Report (April 4, 2022)
Rubber is mainly used in car tires, as well as in various materials such as airplane tires, base isolation structure of high buildings and medical equipment. Despite the mass production of synthetic rubber, natural rubber still remains an important product. Asian countries such as Thailand and Indonesia account for approximately 80% of the world production of natural rubber and Japan imports all natural rubber consumed domestically.
The major natural rubber products traded are Latex, Ribbed Smoked Sheet and Technically Specified Rubber. Latex is liquid rubber collected from rubber trees.
Ribbed Smoked Sheet Rubber is commonly known as RSS. It is made directly from latex. Technically Specified Rubber, also known as TSR, is block rubber made by crashing, cleaning and drying solid rubber. Two types of natural rubber are traded in Osaka Exchange (OSE); Ribbed Smoked Sheet graded RSS3 and Technically Specified Rubber graded TSR20.
OSE Natural Rubber Futures
OSE RSS3 Futures were launched in December 1952. The contracts have used by various types of domestic and foreign investors and its Futures price has recognized as one of the international benchmark of natural rubber prices. In addition to RSS3 Futures, OSE started transactions of TSR20 Futures in October 2018 to meet growing demand of market players in light of changes in the supply chain structure of the natural rubber industry.