SINGAPORE: Japanese rubber futures rose on Monday, underpinned by brightening China economic data, but expectations of increased supply capped the rise.
The Osaka Exchange (OSE) rubber contract for October delivery gained 0.9% to 291.9 yen ($2.03) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery fell 0.27% to 14,730 yuan ($2,018.31) per metric ton.
The most active May butadiene rubber contract on the SHFE rose 0.18% to 11,360 yuan ($1,556.55) per metric ton. China’s industrial profits returned to growth in the first quarter of 2025, official data showed, but will likely come under further pressure amid the trade war with the US. Chinese policymakers sought to assuage concerns the broad US tariffs could derail efforts to shore up a fragile economic recovery. Analysts expect Beijing to deliver more monetary and fiscal stimulus over the coming months to support growth. Meanwhile, overseas rubber-producing areas are gradually tapping again, leading to expected increases in supply, said Chinese rubber sales portal Natural Rubber Network.
Rubber crops usually undergo a season of low production from February to May before a peak harvesting period that lasts until September. Still, production has not yet reached its seasonal peak and inventories of natural rubber are accumulating at a slower rate, said broker Everbright Futures.
In the latest comment from Washington, US Treasury Secretary Scott Bessent on Sunday did not back President Donald Trump’s assertion that negotiations with China were underway. Earlier, Beijing denied that any talks were taking place. The front-month rubber contract on the Singapore Exchange’s SICOM platform for May delivery last traded at 169 US cents per kg, up 0.1%.
Japan’s financial markets will be closed on Tuesday for a public holiday. Trading will resume on Wednesday, April 30.
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