SINGAPORE: Japanese rubber futures dropped on Monday, weighed down by concerns over top consumer China’s economic recovery and lower synthetic rubber prices, although fresh stimulus from Beijing limited losses.
The March Osaka Exchange (OSE) rubber contract closed down 5.5 yen, or 1.39%, at 389.0 yen ($2.60) per kg.
The January rubber contract on the Shanghai Futures Exchange (SHFE) ticked up 10 yuan, or 0.06%, to finish at 18,170 yuan ($2,554.26) per metric ton.
The most active November butadiene rubber contract on the SHFE fell 315 yuan, or 2.03%, to 15,205 yuan ($2,137.46) per metric ton.
China cut benchmark lending rates as anticipated at the monthly fixing, following reductions to other policy rates last month as part of a package of stimulus measures to revive the economy.
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.
The market is in consolidation after recent high price volatility, with potential for movement in either direction, Japan Exchange Group said on the OSE contract.
Weekly trading volume of the SHFE contract dropped, reflecting uncertainty in direction, although market sentiment remains stable, said Japan Exchange Group.
The yen was down nearly 0.2% at 149.26 per dollar, as the US currency looked set to extend its gains in markets counting down to the US presidential election in two weeks.
A softer Japanese currency makes yen-denominated assets more affordable to overseas buyers.
The front-month November rubber contract on Singapore Exchange’s SICOM platform last traded at 194.9 US cents per kg, down 1.9%.
Source: Brecorder
