SINGAPORE, Sept 19 (Reuters) –
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Japanese rubber futures ticked lower onThursday, giving up earlier gains driven by prospects of strong demandfrom top consumer China, which also limited declines.
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The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: closed down 1.5 yen or 0.4%at 373.4 yen ($2.62) per kg, after climbing to $381.6 earlier in the session, its highest since Aug. 30.
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The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 ended up 330 yuan, or 1.87%, to 18,020 yuan($2,551.00) per metric ton.
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The most active November butadiene rubber contract on the SHFE SHBRv1 rose 280 yuan, or 1.77%, to 16,125 yuan($2,282.73) per ton.
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The U.S. dollar rose broadly, reversing a brief tumble in the immediate aftermath of the Federal Reserve’s outsized interest rate cut that had been largely priced in by markets. USD/
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A stronger greenback makes yen-denominated assets more affordable to overseas buyers.
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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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The natural rubber market is expected to continue to fluctuate and rise in the short-term due to growing concerns over worsening supply situation in major exporting countries in Southeast Asia, said Jom Jacob, chief analyst of India-based analysis firm What Next Rubber.
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Rising prices of butadiene rubber prices further support a stronger natural rubber market, he added.
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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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Oil prices rose after a large interest rate cut from the Fed, but concerns over global demand lingered and capped gains. 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 closed up at 196.1 U.S. cents per kg, up 1.7%.
($1 = 142.2900 yen)
($1 = 7.0639 yuan )
Reporting by Haridas and Gabrielle Ng; Editing by Mrigank Dhaniwala and Varun H K
