SINGAPORE, Oct 21 (Reuters) –
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Japanese rubber futures declined on Monday, as uncertainty surrounding top consumer China’s economic recovery clouded the demand outlook.
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The Osaka Exchange (OSE) rubber contract for March delivery JRUc6, 0#2JRU: was down 6.4 yen, or 1.62%, at 388.1 yen ($2.60) per kg, as of 0214 GMT.
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The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery SNRv1 was down 190 yuan, or 1.05%, at 17,970 yuan ($2,529.95) per metric ton.
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The most active November butadiene rubber contract on the SHFE SHBRv1 fell 385 yuan, or 2.48%, to 15,135 yuan ($2,130.82) per metric ton.
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China cut benchmark lending rates as anticipated at the monthly fixing on Monday, following reductions to other policy rates last month as part of a package of stimulus measures to revive the economy.
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Data on Friday showed China’s economic growth was slightly better than expected in the third quarter, although property investment fell more than 10% in the first nine months of the year. Retail sales and industrial production picked up in September.
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Oil prices steadied in early trading, following a more than 7% drop last week on worries about demand in China, the world’s top oil importer, and an easing of concerns about potential supply disruptions in the Middle East. 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 yen JPY=EBS was down 0.1% at 149.32 per dollar, as the U.S. currency looked set to extend its gains in markets counting down to the U.S. presidential election in two weeks. USD/
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A softer Japanese 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 November delivery STFc1 last traded at 193.5 U.S. cents per kg, down 2.6%.
($1 = 149.2500 yen)
($1 = 7.1029 yuan)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu
