SINGAPORE: Japanese rubber futures fell on Wednesday, as investors remained cautious over Chinese demand, although adverse weather in top exporter Thailand lent some support to the market.
The Osaka Exchange (OSE) rubber contract for June delivery closed down 1.7 yen, or 0.68%, at 249.3 yen ($1.72) per kg. The rubber contract on the Shanghai futures exchange (SHFE) for May delivery closed unchanged at 13,470 yuan ($1,877.22) per metric ton.
The World Bank warned that global growth in 2024 is set to slow to 2.4%. Forecast on China’s growth was cut to 4.5% in 2024, reflecting weaker consumer spending amid continued property sector turmoil. * China’s population likely dropped in 2023 due to a surge in COVID-related deaths after lockdowns ended.
The Thai Meteorological Department has warned of thunderstorms in upper Thailand from Jan. 12-16, potentially affecting natural rubber supply. “Physical prices remain robust due to inclement weather in Thailand and Indonesia,” a Singapore-based trader said.
“Futures are trending downward, influenced by weak Chinese economic data. This sentiment is likely temporary, with a market rebound expected once stability returns.” Automotive production in Mexico is expected to grow around 8% in 2024 to top 4,100,000 vehicles produced, industry group AMIA said on Tuesday.
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