OREANDA-NEWS. July 06, 2015. SGX SICOM together with its Rubber Committee (RC), an industry advisory group comprising representatives from producers (Halcyon Agri, Sri Trang Agro, Von Bundit, Lee Rubber), consumers (Goodyear, Pirelli, SMPT), dealers (R1, Yifeng, Tong Teik), Rubber Trade Association of Singapore (RTAS), RC Dispute Resolution Committee (RCDRC), Singapore International Chamber of Commerce Rubber Association (SICCRA) and clearing broker (DBS Vickers), would like to affirm the following.

1.      The SGX SICOM rubber prices continue to be the trusted price benchmark for the rubber industry.

The transaction price for producers and consumers in their physical rubber deals is a commercial decision determined by the parties involved. In transactions where prices are determined as a floating market price or a formula which includes a floating market price factor, SGX SICOM rubber prices have been and continue to be the recognised market benchmark. The SGX SICOM rubber prices are determined by the market based on demand and supply factors, expressed through transacted prices in the SGX SICOM rubber futures. The exchange operates a fair, orderly and transparent market place where market participants have open access to enter the market to fulfil their trading and hedging needs.

2.      The rubber from SGX SICOM Approved Factories list continues to be deliverable into SGX SICOM.

The rubber that conforms to the SGX SICOM TSR20 specifications from the Approved Factories list continues to be deliverable into SGX SICOM. SGX SICOM has not received any official notification to the contrary. If such official notification is received, SGX SICOM will assess the matter with the advice of the RC. Measures to address the situation shall be aimed at maintaining the integrity of a fair, orderly and transparent marketplace. The SGX SICOM Approved Factories list comprises a total of 121 factories located in Thailand (26), Indonesia (78) and Malaysia (17).

Delivery volume for TSR20 rubber at expiry of the SGX SICOM rubber futures is available on the SGX website at www.sgx.com/rubber. It is an insignificant percentage of the total transacted volume – typical of most physically-delivered futures markets – as its main purpose is to converge the futures to the physical market at expiry.

  • Jan 2015 to Apr 2015 – SICOM delivery averaged 2,450 tonnes per month (this is 0.25% of world monthly production of natural rubber; or 1.3% of total SGX SICOM transaction volume)
  • Jan 2014 to Dec 2014 – SICOM delivery averaged 2,633 tonnes per month (this is 0.27% of world monthly production of natural rubber; or 1% of total SGX SICOM transaction volume)


In March 2015, the SGX SICOM rubber futures volume grew 14% year-on-year and in Q1 2015, 50% year-on-year, while other markets have trended in the opposite direction, reflecting continual market participation in SGX SICOM.