SINGAPORE: Japanese rubber futures rose for a third straight session on Friday and ended the week higher, underpinned by a rebound in raw material prices following heavy rainfall in major production areas.
The Osaka Exchange (OSE) rubber contract for March delivery was up 0.65percent at 312 yen (USD2.04) per kg. The contract ended the week up 4.8 percent. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery fell 0.07 percent to 15,315 yuan (USD2,149.44) per metric ton.
The most-active November butadiene rubber contract on the SHFE lost 0.36percent to 11,220 yuan per ton. Heavy rainfall in some domestic and international production areas has led to a rebound in raw material prices, supporting fundamentals for natural rubber, said Chinese manufacturing company Jinlianchuang Rubber Group.
Top rubber producer Thailand’s meteorological agency warned of heavy rains and accumulations from October 13-15. The yen edged up 0.2percent to 152.7 per US dollar, but remained near its weakest level since late February. A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. Chinese holidaymakers’ average spending fell to a three-year low during the country’s Golden Week holiday, offering further evidence of weak consumption in the world’s second-largest economy.
Indian engineering research and development firm Tata Elxsi reported its fourth straight quarter of declining profits, attributing the downturn to a slowdown in the automotive sector. The company noted that the global automotive industry continues to face uncertainty due to fluctuations in the Chinese market and the impact of tariffs. Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
The front-month rubber contract on Singapore Exchange’s SICOM platform for November delivery last traded at 172.3 US cents per kg, down 0.3percent.
Comments
Comments are closed for this article.