SINGAPORE: Japanese rubber futures gained ground on Wednesday, snapping a two-day losing streak, as concerns over reduced seasonal supply and expectations of further Chinese policy stimulus supported prices. The Osaka Exchange (OSE) rubber contract for May delivery closed up 10.6 yen, or 2.88%, at 378.3 yen ($2.49) per kg.
The May rubber contract on the Shanghai Futures Exchange (SHFE) nudged up 130 yuan, or 0.7%, to finish at 18,830 yuan ($2,597.81) per metric ton. Rubber-producing regions in Yunnan and Hainan are about to suspend harvesting from late December, leaving spot supply relatively limited, Chinese rubber sales portal Natural Rubber Network said in a note.
The global rubber-tapping process has gradually slowed down, and this year’s tightness in both supply and demand is difficult to change, Natural Rubber Network said. Meanwhile, in one of their most dovish statements in more than a decade, Chinese leaders on Monday signalled they are ready to deploy whatever stimulus is needed to counter the impact of expected US trade tariffs on next year’s economic growth.
Source: Brecorder
