SINGAPORE, Sept 2 (Reuters) –
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Japanese rubber futures fell on Monday, snapping a nine-day winning streak, weighed down by bleak economic data from top consumer China and lower synthetic rubber prices.
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The rubber contract on the Osaka Exchange (OSE) for February delivery JRUc6, 0#2JRU: closed down 10yen, or 2.66%, at 365.6 yen ($2.50) per kg.
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The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 fell 280 yuan, or 1.68%, to 16,360 yuan ($2,302.44) per metric ton.
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While the supply-demand fundamental for natural rubber remains favourable as unusually heavier rains are posing challenges to harvesting in Thailand, market sentiment is partly clouded by disappointing Chinese manufacturing data, a significant fall in crude oil prices and a sharp downtrend in butadiene prices, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber.
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China’s manufacturing activity sank to a six-month low in August as factory gate prices tumbled and owners struggled for orders, an official survey showed on Saturday, pressuring policymakers to press on with plans to direct more stimulus to households.
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Sentiment remains gloomy among manufacturers as a years-long property crisis keeps domestic demand in the doldrums and Western curbs loom on Chinese exports such as electric vehicles.
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Oil prices extended losses on expectations for higher OPEC+ production starting in October and as signs of sluggish demand in China and the U.S. raised concerns about future consumption growth. O/R
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Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
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The most active October butadiene rubber contract on the SHFE SHBRv1 fell 180 yuan, or 1.19%, to 14,925 yuan ($2,100.49) per metric ton.
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The front-month October rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 179.1 U.S. cents per kg, down 1.8%.
($1 = 146.1500 yen)
($1 = 7.1055 yuan)
Reporting by Gabrielle Ng; Editing by Rashmi Aich and Varun H K
