SINGAPORE: Japanese rubber futures advanced on Tuesday, supported by weather concerns in top producer Thailand and firm downstream demand, although continued global trade tensions capped further gains. The Osaka Exchange (OSE) rubber contract for January delivery was up 6.3 yen, or 1.99%, at 322.8 yen ($2.19) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 250 yuan, or 1.64%, to 15,460 yuan ($2,151.56) per metric ton.
The most active September butadiene rubber contract on the SHFE gained 110 yuan, or 0.96%, to 11,515 yuan ($1,602.53) per ton. Top rubber producer Thailand’s meteorological agency warned of thunder showers, gusty winds, and isolated heavy rains from August 6-7 and 10-11. Rubber prices are expected to rebound modestly in the short term following last week’s losses, driven by rising downstream restocking demand and a slight easing of domestic inventory pressures, Chinese commodities data provider Longzhong Information said.
Still, concerns surrounding US tariffs and China’s persistent overcapacity issues continue to weigh on overall sentiment, Japan Exchange Group said on Monday.
In currency markets, the yen held steady at 147.1 per dollar after the June policy meeting indicated that the central bank may consider resuming interest rate hikes if trade tensions ease.
A stronger currency makes yen-denominated assets less affordable for overseas buyers. Meanwhile, Tesla’s sales of China-made electric vehicles fell 8.4% year-on-year in July on increasing competition from rivals offering lower-priced new models.
Lower automobile prices, driven by fierce competition, exert pressure on rubber tyre prices. The front-month rubber contract on Singapore Exchange’s SICOM platform for September delivery last traded at 167.1 US cents per kg, up 0.6%.
Comments
Comments are closed for this article.