Halcyon Agri: Seven factories approved to deliver new Shanghai rubber contract

Rubber bicycle tyre; taken September 2018.Rubber bicycle tyre

The Shanghai International Energy Exchange (INE) approved seven of Halcyon Agri’s factories to supply Technically Specified Rubber 20 (TSR20) for delivery, the rubber producer said in a filing to SGX Wednesday.

INE is a subsidiary of the Shanghai Futures Exchange (SHFE).

Trading of the new SHFE TSR20 contract will begin on 12 August, with foreign investors eligible, Halcyon Agri said.

“This development is likely to have a positive impact on the natural rubber market as a whole, as investor liquidity in China has historically been restricted to the SHFE WF (Whole Field Latex) contract, which is a grade not typically used in the manufacture of tyres,” Halcyon Agri said.

“By launching the TSR20 futures contracts, SHFE is providing producers and consumers of natural rubber a new risk management tool, whilst offering investors unique access not only to tyre-grader rubber futures and derivatives, but also to the underlying currency pairs (CNY/IDR, CNY/THB and CNY/MYR),” the rubber producer added.

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