BEIJING: Japanese rubber futures headed for a weekly gain on Friday after two consecutive weekly losses, aided by rising oil prices earlier in the week, tight supply conditions in major producers, firmer raw material costs and market sentiment.
The Osaka Exchange (OSE) rubber contract for October delivery was up 0.14percent at 420.5 yen per kg, as of 0234 GMT. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 0.91percent to 17,765 yuan per metric ton.
The most-active June butadiene rubber contract on the SHFE added 0.77percent to 14,435 yuan per ton. Support for Shanghai rubber prices also came from upbeat Chinese economic data. Profits at China’s industrial firms rose 18.2percent in the first four months over the corresponding period last year, official data showed on Wednesday.
Oil futures fell slightly on hopes for a potential deal to extend a US-Iran ceasefire, although remarks from US Vice President JD Vance that the nations were “close” to reaching a deal but “not there yet” kept a floor under prices.
“Raw material prices in Thailand remain elevated during the peak season, indicating strong demand from China. Thai grades are primarily consumed by Chinese buyers, and current buying interest continues to provide strong market support,” said Jeff Guo, senior analyst and trader at Olam Agri Guo added that Indonesia has faced severe supply disruptions this year.
Although higher prices have encouraged farmers to increase tapping activity, weak productivity has continued to constrain overall supply. Japan’s Nikkei share average extended gains in early morning trading, boosting investor confidence on Japanese futures. The front-month rubber contract on Singapore Exchange’s SICOM platform for June delivery last traded at 223 US cents per kg, down 2.3 percent.
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