SINGAPORE: Japanese rubber futures gained more ground on Thursday, tracking a rally in oil prices and potential supply disruptions in top producer Thailand, although a firmer yen limited gains.
The June Osaka Exchange (OSE) rubber contract closed up 2.7 yen, or 0.7%, at 386.5 yen ($2.48) per kg. The March rubber contract on the Shanghai Futures Exchange (SHFE) rose 230 yuan, or 1.33%, to finish at 17,485 yuan ($2,384.91) per metric ton. The most active February butadiene rubber contract on the SHFE gained 355 yuan, or 2.5%, to 14,575 yuan ($1,988.00) per metric ton.
Oil prices gained for a second straight session, supported by supply worries over US sanctions on Russia, improving demand prospects and a fall in US crude oil stocks. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
In top producer Thailand, the northeast monsoon will strengthen with heavy rains, the country’s meteorological agency said. Increasing prices for Thai raw materials is keeping rubber prices buoyant as the market tries to predict when wintering will commence, said Farah Miller, founder of independent rubber-focused data firm Helixtap Technologies.
The yen traded as firm as 155.21 per US dollar, its strongest since Dec. 19, 2024, amid possible rate hikes from the Bank of Japan.
Comments
Comments are closed for this article.