SINGAPORE, Aug 30 (Reuters) –
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Japanese rubber futures rose on Friday to 13-year highs, and were set for biggest weekly gain in five months, as tight supply lifted sentiment, although tepid demand amid higher raw material prices in top consumer China capped gains.
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The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: was up 5.5 yen, or 1.47%, at 379.4 yen ($2.62) per kg, as of 0201 GMT.
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The contract hit an intraday high of 379.7 yen, its highest since Aug. 8, 2011.
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The contract has gained 8.74% so far this week, and is on track for its largest weekly rise since March 15.
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The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 fell 5 yuan, or 0.03%, to 16,715 yuan ($2,355.05) per metric ton.
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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 2.04% and 0.41%, to stand at 95.51 baht ($2.81) and 67.85 baht ($2.00), respectively.
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Top producer Thailand’s meteorological agency warned of heavy to very heavy rains that may cause flash flood from Sept. 1-4.
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Raw material output continues to be low as heavy rainfall in Thailand caused floods, said Chinese consultancy Longzhong Information in a note.
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Seasonal supply growth is lower than expected, increasing cost support, but downstream domestic demand is still poor as product manufacturers lack confidence in future orders and have a mindset of waiting for prices to fall, placing supply and demand in a stalemate, added Longzhong Information.
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The yen JPY=EBS held near the closely watched 145 per dollar level after weakening on Thursday.
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A weaker currency makes yen-denominated assets more affordable to overseas buyers. FRX/
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The front-month rubber contract on Singapore Exchange’s SICOM platform for September delivery STFc1 was last flat, trading at 181.0 U.S. cents per kg.
($1 = 144.8500 yen)
($1 = 7.0975 yuan)
($1 = 33.9400 baht)
Reporting by Gabrielle Ng; Editing by Sherry Jacob-Phillips
