SINGAPORE: Japanese rubber futures edged higher on Monday, tracking gains in the Shanghai market as top buyer China relaxed some of its strict Covid-19 restrictions, while stronger crude prices also lent support.
The Osaka Exchange rubber contract for April delivery was up 0.8 yen, or 0.4%, at 217.8 yen ($1.57) per kg, as of 0200 GMT. The rubber contract on the Shanghai futures exchange for January delivery was up 90 yuan, or 0.7%, at 12,690 yuan ($1,794) per tonne.
Japan’s benchmark Nikkei share average opened up 0.05%. Oil prices rose nearly 1% as China eased some of its strict COVID-19 protocols, fuelling hopes of a recovery in economic activity and demand at the world’s top crude importer. The natural rubber market benefits from stronger oil prices that spur manufacturers to shift away from synthetic rubber, which is derived from oil.
Mainland China’s Health Commission reported 16,203 new coronavirus cases for Nov. 13, compared with 14,878 new cases a day earlier. Past months have seen growing concerns over slowing rubber demand in China as the country struggles with a property crisis, heat waves disrupting production, and extended lockdowns hitting industrial activity and consumption.
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