SHANGHAI: Japanese rubber futures edged higher on Tuesday, tracking a rebound in oil prices, although rising seasonal supply and persistently weak tyre demand kept gains in check.
The Osaka Exchange (OSE) rubber contract for January delivery was up 5.1 yen, or 1.23percent, at 419.3 yen (USD2.66) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 265 yuan, or 1.61percent, to 16,685 yuan (USD2,471.01) per metric ton.
The most active September butadiene rubber contract on the SHFE gained 70 yuan, or 0.55percent, to 12,840 yuan per metric ton. Oil prices partially rebounded from a plunge in the previous session, climbing 1percent on Tuesday, on concerns that Middle East supply remains at risk as a diplomatic resolution to the US-Iran war that has disrupted shipments still appears out of reach.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. Rising seasonal supply and weak tyre demand capped gains.
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