SINGAPORE: Japanese rubber futures dipped on Monday, weighed down by a firmer yen, while seasonal demand woes and sluggish Chinese data contributed to a subdued demand outlook from the world’s top consumer.
The June Osaka Exchange (OSE) rubber contract ended daytime trade 3.4 yen lower, or 0.89%, at 378.6 yen ($2.43) per kg. The March rubber contract on the Shanghai Futures Exchange (SHFE) gained 205 yuan, or 1.19%, to 17,450 yuan ($2,401.40) per metric ton, cushioning the fall since synthetic rubber competes with natural rubber. The most active February butadiene rubber contract on the SHFE rose 115 yuan, or 0.78%, to 14,780 yuan ($2,033.96) per metric ton. The Japanese yen was steady at 155.88 per dollar after the Bank of Japan pushed its policy rate to the highest level since the 2008 financial crisis. A stronger currency makes yen-denominated assets less affordable to overseas buyers.
The capacity utilisation rate of semi-steel and full-steel tire enterprises has fallen month-on-month as companies prepare for the Lunar New Year holidays, Chinese commodities data provider Longzhong Information said in a note. Meanwhile, China’s manufacturing activity unexpectedly contracted in January, official data showed, curbing market sentiment and causing Chinese equities to trade flat.
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