SINGAPORE: Japanese rubber futures edged higher on Thursday, supported by supply concerns and resilient demand in the Chinese automobile market, although mounting U.S.-China trade tensions and a firmer yen capped the rise.
The Osaka Exchange (OSE) rubber contract for July delivery ended daytime trade 0.4 yen higher, or 0.11%, at 374.5 yen ($2.45) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery rose 205 yuan, or 1.2%, to 17,290 yuan ($2,373.60) per metric ton.
The most active February butadiene rubber contract on the SHFE ticked up 95 yuan, or 0.65%, to 14,635 yuan ($2,009.12) per metric ton.
From February 8-10, the northeast monsoon will strengthen, with isolated thunder showers in the south, said top producer Thailand’s meteorological agency.
Chinese automobile production and sales reached record highs in 2024 and export growth rates saw a similar surge, consultancy Hexun Futures said, citing statistics from the China Association of Automobile Manufacturers (CAAM).
Japan rubber futures snap four-day rally on trade war concerns fuelled by Trump tariffs
Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
China and Hong Kong stocks advanced, driven by the tech sector following Chinese AI startup DeepSeek’s breakthrough.
Meanwhile, the yen climbed to an eight-week high, strengthening as far as 151.81 per dollar.
A stronger currency makes yen-denominated assets less affordable to overseas buyers.
China has filed a complaint with the World Trade Organisation against U.S. President Donald Trump’s 10% tariff on Chinese imports.
Trump’s new tariffs kicked in on Tuesday, prompting retaliatory duties from Beijing.
The front-month rubber contract on the Singapore Exchange’s SICOM platform for March delivery last traded at 196.2 U.S. cents per kg, up 1.7%.
Comments
Comments are closed for this article.