SINGAPORE: Japanese rubber futures eased on Friday on softer demand for the tyre-making material in top consumer China, though the contract posted weekly gains as wet weather sparked supply concerns. The Osaka Exchange (OSE) rubber contract for November delivery ended daytime trade 2.9 yen lower, or 0.97%, at 295.4 yen ($2.03) per kg. The contract gained 1.1% this week. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery dipped 110 yuan, or 0.79%, to 13,900 yuan ($1,934.72) per metric ton. The most active July butadiene rubber contract on the SHFE fell 105 yuan, or 0.89%, to 11,630 yuan ($1,618.76) per metric ton.
“Rainfall in production areas at home and abroad interfered with tapping and the overall output of raw materials was in short supply,” said Chinese commodities data provider Longzhong Information.
Central and southern China were on high alert for more flash floods on Friday as the annual East Asia monsoon gathered pace. Top producer Thailand’s meteorological agency warned of rainfall that could cause flash floods and overflows from June 21-26, adding that farmers should prepare for crop damage.
Consumption from the tyre industry is poor as demand enters the off-season, weighing on prices, said Chinese financial information site Tonghuashun Information.
In currency markets, the yen edged up 0.1% to 145.35 per dollar. A stronger currency makes yen-denominated assets less affordable to overseas buyers. The front-month rubber contract on Singapore Exchange’s SICOM platform for July delivery last traded at 161.2 US cents per kg, down 1.6%.
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