Natural rubber is a processed material obtained from the latex of Hevea Brasiliensis trees and may be used to manufacture different grades of rubber. Technically Specified Rubber (TSR) is liquid latex which has been allowed to congeal naturally and reformed into blocks that can be used in tyre manufacturing. Ribbed Smoked Sheet (RSS) is liquid latex rolled into sheets and put through a smoking process.
Worldwide consumption for natural rubber has increased steadily in the recent decade and the Asian story continues to drive demand for the raw material.
The volatility of rubber prices has reached unprecedented highs in the wake of the 2008 global financial crisis and imbalances in supply and demand caused by prolonged adverse weather conditions in major producing countries. Prudent risk management has become an important notion in businesses today.
With over 80 years of trading heritage, the SICOM market is recognised as the world's price discovery centre for natural rubber and synonymous with providing the pricing standard for the rubber industry globally. SGX offers two SICOM Rubber Futures - RSS3 and TSR20 to provide market participants with a reliable pricing basis as a point of reference for their physical cargo and to manage price risks. SGX remains committed to serve as a pricing benchmark for regional and global producers, traders and consumers.