TOKYO: Japanese rubber futures climbed on Monday, bouncing back from their early losses, as investors scooped up bargains following the recent declines, though growing worries over slower demand in top buyer China capped gains.
The Osaka Exchange rubber contract for January delivery was up 0.6 yen, or 0.3%, at 216.1 yen ($2.0) per kg as of 0207 GMT, after touching its lowest since July 28 of 211.4 yen earlier in the session.
The OSE benchmark dropped 3.2% last week, marking its first weekly decline in four as global growth jitters took a heavy toll on commodities, with base metals, bulk resources and oil all falling.
China’s economic data showed growth has been slowing in recent months as new COVID-19 outbreaks and floods disrupted business operations.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 2.1% from a week earlier, the exchange said on Friday.
The resurgence of COVID-19 cases in the United States due to the Delta variant and the new guidance from the US Centers for Disease Control and Prevention that requires fully vaccinated individuals to wear masks have led companies to change their plans on vaccinations and masking.
The rubber contract on the Shanghai futures exchange for January delivery was down 80 yuan, or 0.6%, at 14,265 yuan ($2,198) per tonne on Monday.