SINGAPORE, Sept 20 (Reuters) –
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Japanese rubber futures logged a weekly gain on supply concerns across major producing regions, even as muted Chinese economic prospects dimmed the top consumer’s demand outlook and dragged prices lower on Friday.
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The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: closed down 6.7 yen, or 1.79%, at 366.7 yen ($2.56) per kg.
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The contract gained 2.17% for the week.
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The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 rose 20 yuan, or 0.11%, to 17,875 yuan ($2,534.89) per metric ton.
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This week’s uptrend in natural rubber was supported by concerns over worsening supply in major Southeast Asian exporting countries, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber.
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Jacob said supply was hit by the shrinking area of rubber-yielding trees, adverse effects of widespread leaf diseases, and recent labour shortages and wage hikes among farmers.
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Chinese manufacturing companies and traders are expected to actively buy natural rubber ahead ofthe Golden Week holiday from Oct. 1-7, given abnormally low Qingdao inventoriesQingdao and sharp fallsin domestic production caused by Typhoon Yagi, added Jacob.
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There was likely some profit-taking today before the weekend and after sharp moves up, and as tyre majors were sidelined this week, said Farah Miller, CEO of independent rubber-focused data firm Helixtap Technologies.
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China unexpectedly left lending rates unchanged at its monthlyfixing, confounding market expectations that were primed for a move after the Fed’s outsizedinterest rate cut earlier this week.
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Analysts still expect Chinese policymakers to step up measures to help the economy meet its increasingly challenging 2024 growth target, with a sharper focus on boosting demand to fight persistent deflationary pressures, as a string of August economic data surprised to the downside.
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The front-month October rubber contract on Singapore Exchange’s SICOM platform STFc1 last traded at 195.1 U.S. cents per kg, down 0.8%.
($1 = 143.1700 yen)
($1 = 7.0516 yuan)
Reporting by Gabrielle Ng; Editing by Rashmi Aich and Eileen Soreng
