SHANGHAI: Japanese rubber futures fell to a one-month low on Wednesday, dragged by a pullback in synthetic rubber prices and rising raw material supply from top rubber producer Thailand.
The Osaka Exchange (OSE) rubber contract for January delivery was down 4.3 yen, or 1.03percent, at 411.8 yen (USD2.52) per kg. The contract hit its lowest since July 6 at 408.9 yen earlier in the day.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery fell 355 yuan, or 2.12percent, to 16,370 yuan (USD2,418.27) per metric ton.
The most active September butadiene rubber contract on the SHFE fell 1.27percent for a third straight session to 12,845 yuan per metric ton, touching its lowest since July 14.
Synthetic rubber prices tracked crude lower earlier this week as markets unwound the geopolitical premium built up during the US-Iran conflict, Chinese broker Zhongtai Futures said in a note. The decline in synthetic rubber prices also weighed on natural rubber sentiment, as weaker support from Thai latex prices compounded the pressure, said Zhongtai Futures.
Favourable weather and abundant early-stage rainfall in Thailand have boosted raw material output and lowered purchase prices, analysts from Chinese broker Guoxin Futures said in a note.
Prices of Thailand’s benchmark export-grade smoked rubber sheet (RSS3) and block rubber were down 1.29percent and 0.42percent, to stand at 95.55 baht (USD2.85) per kg and 78.67 baht per kg, respectively.
Japan’s Nikkei share average plunged to a fresh two-month low on Wednesday, as investors sold off chip-linked shares ahead of major US tech earnings, while renewed fighting in the Middle East dampened risk appetite.
The front-month rubber contract on Singapore Exchange’s SICOM platform for October delivery last traded at 209.7 US cents per kg, down 1.7percent as of 0700 GMT.
Comments