SINGAPORE: Japanese rubber futures rose for the second straight session on Wednesday, buoyed by robust tyre demand in India following recent tax reforms.
The Osaka Exchange (OSE) rubber contract for February delivery rose 2 yen, or 0.65 percent, at 311.4 yen (USD2.10) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery gained 50 yuan, or 0.32 percent, to 15,620 yuan (USD2,194.13) per metric ton.
The most-active November butadiene rubber contract on the SHFE added 40 yuan, or 0.35 percent, to 11,520 yuan per metric ton.
Shares of India’s tyre manufacturers surged on Tuesday after auto dealerships reported a significant growth in customer footfall on Monday, as buyers flocked to buy vehicles at reduced prices under the reformed goods and services tax regime.
India ranks among the top consumers of rubber globally, driven by the country’s robust tyre manufacturing industry.
Automobile sales could influence the intensity of vehicle manufacturing, which involves using rubber-made tyres.
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