SINGAPORE: Japanese rubber futures ended higher on Friday as traders tracked firmer physical rubber prices, although the contract logged a downbeat performance this week.
The Osaka Exchange (OSE) rubber contract for January delivery closed up 2.4 yen, or 0.76%, at 317.7 yen ($2.07) per kg. The contract logged a weekly loss of 0.41%.
The September rubber contract on the Shanghai Futures Exchange (SHFE) rose 15 yuan, or 0.1%, to finish at 14,365 yuan ($1,981.60) per metric ton. It shed 1.41% this week, posting its sharpest weekly drop since July 5. The price of Thailand’s benchmark export-grade smoked rubber sheet (RSS3) rose 1.12% to 80.07 Thai baht ($2.22) per kg on a free-on-board basis, according to LSEG data.
Overall demand from tyre manufacturers continued to remain muted this week, said Farah Miller, CEO of independent rubber-focused data firm Helixtap Technologies. Amid stable Chinese demand and ample inventory levels, buyers turned cautious following the drop in rubber futures earlier this week, Miller added. Both Osaka and Shanghai rubber futures slid to two-month lows on Thursday.
The yen on Friday was at 153.66 against the dollar, set for a 2.5% rise for the week, its biggest weekly gain since late April-early May. Traders unwound long-held bets against the frail currency ahead of crucial US inflation data, and a global stocks rout drove investors towards safe assets, including the yen.
A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers. Italian Prime Minister Giorgia Meloni will visit China from July 26-31, aiming to improve trade with China. One of the panels of the Italy-China Business Forum, to be held in Beijing on Sunday and Monday, will be dedicated to the automotive sector. The front-month August rubber contract on Singapore Exchange’s SICOM platform last traded at 161.2 US cents per kg, up 0.4%.
Comments
Comments are closed for this article.