SINGAPORE, Aug 29 (Reuters) –
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Japanese rubber futures advanced for the eighth consecutive day to 13-year highs on Thursday, driven by tightened global supply from rainfall in production areas and increased demand.
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The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: was up 2.2 yen, or 0.59%, at 374.0 yen ($2.59) per kg as of 0155 GMT.
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The contract hit an intraday high of 375.5 yen, its strongest level since Sep. 1, 2011.
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The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 rose 65 yuan, or 0.39%, to 16,740 yuan ($2,347.66) per metric ton.
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Rainfall has affected Thai and Yunnan production areas, with floods occurring in many Thai regions, hindering rubber tapping, according to a note from Chinese financial information site Hexun Futures.
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Moreover, weather forecasts show it will continue to rain in production areas in the short-term, supporting the strength in the rubber market, added Hexun Futures.
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Top rubber producer Thailand’s meteorological agency warned of heavy to very heavy rains that may cause flash flood and overflows on Aug. 28 and Sept. 1-3.
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The price of Thailand’s benchmark export-grade smoked rubber sheet (RSS3) RUB-RSS3C-BKK and block rubber RUB-STR20C-BKK were up 2.64% and 0.84%, to stand at 93.6 baht ($2.75) and 67.57 baht ($1.99), respectively.
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With the support of domestic policies to promote automobile consumption, the downstream tire industry has maintained a stable and positive trend, as the production of tires has rebounded, providing demand support for natural rubber, said Chinese commodities data provider Business Community.
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Chinese electric vehicle maker BYD 1211.HK002594.SZ reported its fastest net profits growth since end-2023 for the April-June quarter.
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Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
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The front-month September rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 182.3 U.S. cents per kg, up 0.1%.
($1 = 144.6300 yen)
($1 = 7.1305 yuan)
($1 = 34.0200 baht)
Reporting by Gabrielle Ng; Editing by Sumana Nandy
