SINGAPORE: Japanese rubber futures ticked up on Thursday amid supply concerns and resilient demand in the Chinese automobile market. However, mounting trade tensions between the U.S. and top consumer China and a firmer yen capped the rise.
The Osaka Exchange (OSE) rubber contract for July delivery ended morning trade 2.1 yen higher, or 0.56%, at 376.2 yen ($2.47) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for
May delivery rose 150 yuan, or 0.88%, to 17,235 yuan ($2,367.90) per metric ton.
The most active February butadiene rubber contract on the SHFE
dipped 60 yuan, or 0.41%, to 14,480 yuan ($1,989.39) per metric ton.
From Feb. 8-11, the northeast monsoon will strengthen with isolated thunder-showers in the south, said top producer Thailand’s meteorological agency.
Chinese automobile production and sales reached record highs in 2024 and export growth rates saw a similar surge, Chinese consultancy Hexun Futures said, citing statistics from the China Association of Automobile Manufacturers (CAAM).
Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
Japan rubber futures snap four-day rally on trade war concerns fuelled by Trump tariffs
The U.S. dollar sank 0.5% to 151.81 yen, slumping to an eight-week trough to the yen.
A stronger currency makes yen-denominated assets less affordable to overseas buyers.
Meanwhile, China has filed a complaint with the World Trade Organisation against U.S. President Donald Trump’s 10% tariff on Chinese imports and cancellation of a duty-free exemption for low-value packages, arguing that the actions are “protectionist” and break WTO rules.
Trump’s new tariffs kicked in on Tuesday, prompting prompt retaliatory duties from Beijing.
The Chinese foreign ministry has called for a dialogue between the two countries, with a new round of talks seen as key to easing or delaying the tariffs.
The front-month rubber contract on Singapore Exchange’s SICOM platform for March delivery last traded at 195.6 U.S. cents per kg, up 1.3%.
Source: Brecorder
