SINGAPORE: Japanese rubber futures climbed for the fifth consecutive session on Wednesday to their highest in more than two-and-a-half months, aided by global supply concerns and improving market sentiment in top consumer China.
The June Osaka Exchange (OSE) rubber contract closed up 7.6 yen, or 2.02%, at 383.8 yen ($2.44) per kg. Earlier in the session, the contract touched its highest point since Oct. 25 at 386 yen.
The March rubber contract on the Shanghai Futures Exchange (SHFE) rose 305 yuan, or 1.78%, to 17,425 yuan ($2,376.63) per metric ton. The most-active February butadiene rubber contract on the SHFE edged higher by 20 yuan, or 0.14%, to 14,275 yuan ($1,947.00) per ton. In top rubber producer Thailand, the monsoon prevailing over the gulf and southern region will strengthen, the country’s meteorological agency said on its website.
Due to the weather, harvesting in northeastern Thailand may stop early, and the price of raw materials will remain high, Chinese consultancy Hexun Futures said in a note.
Beijing said on Monday December exports surged to record levels, after some companies stockpiled shipments of various goods ahead of US President-elect Trump’s plan to impose new tariffs.
Still, Chinese stocks dropped on Wednesday following a strong rally in the previous session. Meanwhile, Washington is finalising rules that will effectively bar nearly all Chinese cars and trucks from the US market, as part of a crackdown on vehicle software and hardware from the country.
Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres. The front-month rubber contract on Singapore Exchange’s SICOM platform for February delivery last traded at 194.5 US cents per kg, up 0.1%.
Source: Brecorder
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