SINGAPORE: Japanese rubber futures declined on Thursday, weighed down by a stronger yen and subdued crude oil prices that languished near a six-month low, though positive Chinese export data limited the losses. The Osaka Exchange (OSE) rubber contract for May delivery was down 2.9 yen, or 1.2%, at 240.6 yen ($1.64) per kg at closing.
The rubber contract on the Shanghai futures exchange (SHFE) for May delivery was up 150 yuan, or 1.1%, at 13,370 yuan ($1,867.94) per metric ton.
The Japanese yen strengthened 0.7% against the dollar and last traded at 146.27, close to the near three-month high of 146.23 touched at the start of the week.
A stronger yen makes yen-denominated assets less affordable for buyers holding foreign currency. Oil prices reclaimed some ground on Thursday after tumbling to a six-month low in the previous session but investors remained concerned about sluggish demand and economic slowdowns in the US and China.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. China’s exports grew for the first time in six months in November, suggesting factories in the world’s second-largest economy are attracting buyers through discount pricing to get over a prolonged slump in demand.
China’s General Administration of Customs released preliminary trade data for November on Thursday, showing a 8.73% month-on-month increase in rubber (natural and synthetic) exports. However, compared to the same month last year, there was a 7.18% decline in rubber exports. Japan’s benchmark Nikkei average closed 1.76% lower.
Comments
Comments are closed for this article.