Japan futures surge on hope for strong China demand, but book weekly loss
- Osaka Exchange's (OSE) rubber contract for April delivery finished up 6.0 yen, or 2.8%, at 222.3 yen ($2.15) per kg. Still.
- Rubber prices have rocketed last month to their highest in over three years as protective glove demand surges due to the COVID-19 crisis and industrial use rebounds in China.
TOKYO: Japanese rubber futures surged for a second day on Friday, amid hopes of demand recovery in top buyer China and fears over lower supply, but booked their first weekly loss in five as investors took profits from October's rally.
Osaka Exchange's (OSE) rubber contract for April delivery finished up 6.0 yen, or 2.8%, at 222.3 yen ($2.15) per kg. Still, it recorded an 11% loss for the week after it jumped 36% in October.
Rubber prices have rocketed last month to their highest in over three years as protective glove demand surges due to the COVID-19 crisis and industrial use rebounds in China, while supplies remain tight with producers struggling to replenish stocks.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 250 yuan to finish at 14,745 yuan ($2,228) per tonne.
Investors also awaited a clear result from the US presidential election. Democratic candidate Joe Biden took a narrow lead over President Donald Trump in the battleground state of Georgia for the first time early on Friday.
The US dollar was quoted around 103.26 yen, compared with 104.29 yen the previous day.
The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 154.5 US cents per kg, down 1.7%.
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