SINGAPORE: Japanese rubber futures closed lower for the second straight week, pressured by the peak tapping season in Southeast Asia and expectations of increased overseas supply.
The Osaka Exchange (OSE) rubber contract for February delivery sheds 2.2 yen, or 0.71 percent, to 307 yen (USD2.08) per kg. The contract ended the week 2.94 percent lower. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery lost 95 yuan, or 0.61percent, to 15,535 yuan (USD2,183.94) per metric ton.
The most active November butadiene rubber contract on the SHFE lost 10 yuan, or 0.09 percent, to 11,445 yuan per metric ton. Stockpiling ahead of China’s National Day holiday provided support to rubber prices, said Chinese financial information site Hexun Futures. Still, prices are expected to remain weak in the short term as Southeast Asia has entered its peak rubber tapping season, while expectations of a recovery in overseas supply are further pressuring prices, said Tonghuashun Information. The dollar lost 0.4 percent against the yen to 147.325 yen, following the Bank of Japan’s decision to maintain interest rates at 0.5 percent. A stronger currency makes yen-denominated assets less affordable to overseas buyers. South Korean automaker Hyundai Motor will seek to ramp up its US output, producing more than 80 percent of the vehicles it sells in the US by 2030.
Comments
Comments are closed for this article.