SINGAPORE: Japanese rubber futures hit 16-month highs on Tuesday, as concerns over potential supply shortages in Thailand mounted. The Osaka Exchange (OSE) rubber contract for March delivery was up 5.6 yen, or 2.2%, at 265.2 yen ($1.77) per kg at closing, its highest since June 9, 2022.
The rubber contract on the Shanghai futures exchange (SHFE) for January delivery was up 25 yuan, or 0.2%, at 14,825 yuan ($2,026.77) per metric ton.
“Potential raw material shortages in Thailand and other regions are prompting market reassessment of supply-demand balance for this year,” a Singapore-based trader said.
The Thai Metrological Department has warned of severe conditions, with gusty winds, heavy-to-very heavy rains and accumulations that may cause flash floods and overflows, potentially affecting supply.
Source: Brecorder
