GMG Global

Asian rubber futures are settling higher on tight physical supply due to continuing rains that have slowed tapping of trees in major growing regions in Thailand and Malaysia. Nov rubber futures on the Shanghai Futures Exchange settled 0.1% higher at Rmb21,520/ton or S$4,380/ton. In comparison, GMG Global’s average selling price in 1Q10 was S$3,900/ton. Empirical evidence shows that GMG’s share price is closely correlated to rubber price trends.