BEIJING: Japanese rubber futures rose on Wednesday, supported by strong Shanghai prices due to supply worries. Osaka Exchange’s rubber contract for June delivery finished 2.2 yen ($0.0191) higher at 236.2 yen per kg.
The rubber contract on the Shanghai futures exchange for May delivery rose 170 yuan ($26.68) to finish at 14,820 yuan per tonne due to low inventories in Qingdao and COVID-19 cases in main producer Yunnan province.
High transport cost and delayed shipment have curbed rubber cargoes coming to China, leading to low inventories in Qingdao, a major port for the commodity trade.
Local authorities in Xishuangbanna, an autonomous prefecture in China’s southwestern Yunnan province, the top rubber producer in the country, imposed partial lockdown measures following a new local coronavirus case, causing market worries over supplies.
The front-month rubber contract on Singapore’s SICOM exchange for January delivery last traded at 172.9 U.S. cents per kg, up 0.3%.