SINGAPORE: Japanese rubber futures rose on Friday, helped by a weaker yen, but posted their third weekly fall in four amid worries about demand from top consumer China.
The Osaka Exchange (OSE) rubber contract for April delivery closed 6 yen, or 1.74%, higher at 350 yen($2.24) per kg. The contract dropped 4.71% for the week.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery closed down 65 yuan, or 0.37%, to 17,650 yuan ($2,441.62) per metric ton.
The most-active January butadiene rubber contract on the SHFE closed down 365 yuan, or 2.7%, at 13,175 yuan($1,822.57) per ton.
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China’s factory output growth slowed in October, keeping alive calls for Beijing to top up its recent blitz of stimulus to revitalise the economy.
China’s new home prices fell the most year-on-year in October since 2015, but a narrowing monthly rate of declines suggested the property sector was beginning to stabilise.
The dollar has gained for five days on the yen. It was last up 0.1% at 156.36, the highest since July.
Japanese rubber futures firm
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers.
Oil prices fell on signs of demand in biggest crude importer China continuing to underperform amid its uneven economic recovery.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Top rubber producer Thailand’s meteorological agency warned of heavy rains and flash floods from Nov. 15-21.
The front-month rubber contract on Singapore Exchange’s SICOM platform for December delivery last traded at 187.3 U.S. cents per kg, up 0.4%.
Source: Brecorder
