SINGAPORE, Sept 19 (Reuters) –
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Japanese rubber futures strengthened on Thursday, buoyed by a weaker yen and firmer demand prospects from top consumer China, although lower oil prices capped gains.
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The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: was up 2.5 yen, or 0.67%, at 377.4 yen ($2.63) per kg as of 0202 GMT.
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The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 was up 210 yuan, or 1.19%, to 17,900 yuan ($2,520.27) per metric ton.
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The most active November butadiene rubber contract on the SHFE SHBRv1 rose 215 yuan, or 1.36%, to 16,060 yuan ($2,261.21) per metric ton.
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The dollar on Thursday gained 0.58% against the yen to 143.12 JPY=EBS, recovering from an earlier tumble in the immediate aftermath of the Federal Reserve’s outsized interest rate cut. USD/
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A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/
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Downstream production has stabilised, and the automobile industry has gradually emerged from the off-season, Chinese financial information site Hexun Futures said in a note.
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Analysts believe the rubber market will continue to fluctuate and rise in the short-term, and will continue to track weather changes in major production areas, as well as the impact of U.S. trade policies on China, Hexun Futures said.
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China’s commerce minister said on Wednesday that Beijing will continue to negotiate “until the last minute” on the European Union’s electric vehicle probe.
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Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
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Oil prices fell on Thursday after a larger-than-expected Fed rate cut sparked concerns about the U.S. economy. 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 front-month October rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 195.3 U.S. cents per kg, up 1.2%.
($1 = 143.7400 yen)
($1 = 7.1024 yuan)
Reporting by Gabrielle Ng; Editing by Mrigank Dhaniwala
