On 12th Aug 2019, Shanghai Futures finally launched its own technically specified rubber (TSR) 20 futures on the exchange, coded NR20

China is the world’s largest natural rubber importer. And TSR20 grade is mainly used to make tyres.

At the moment, China mostly buys the grade from Thailand, Indonesia, Malaysia and other Southeastern Asian countries.

This newly introduced TSR 20 contract will have the same trading policies as Shanghai’s crude oil futures, which means foreign investors will be allowed to trade.

Currently, there are a total of 25 factories, both domestic and overseas, being approved by SHFE.

Among them, 6 factories belong to Sri trang Group.

‘We are very glad that our factories are being officially approved by Shanghai Futures NR20 contract. This would greatly enhance our strength in term of hedging and arbitrage. Such approval also shows that Sri Trang rubber is well recognized by China market.’ Sri trang marketing manager comments on the matter, ‘So far, Sri Trang factories is approved by all futures market around the globe, including Sicom, Tocom and Shanghai Futures. We will participate on such global stage, utilize every opportunity to generate profit margin for STA shareholders.”

The first trading month of NR20 starts on Feb 2020.

It is believed that launching TSR 20 futures can provide price risk management for companies along the rubber industry chain, by helping them to lock in costs and stay profitable.

The exchange already has a rubber futures contract, trading domestic SCR WF rubber brand and imported ribbed smoked sheet No. 3 (RSS3).