SINGAPORE: Japanese rubber futures fell on Wednesday on easing supply concerns as the weather in key producing regions in Southeast Asia improved, though a robust outlook for China’s car sales capped losses. The Osaka Exchange (OSE) rubber contract for January delivery lost 2.9 yen, or 0.9%, to 319.9 yen ($2.17) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 115 yuan, or 0.75%, to 15,495 yuan ($2,155.41) per metric ton. The most active September butadiene rubber contract on the SHFE gained 45 yuan, or 0.39%, to 11,505 yuan ($1,600.38) per metric ton.
Major rubber producers such as Thailand and Vietnam have seen gradual weather improvements since late July, resulting in fewer rain-related disruptions to tapping and a seasonal rise in raw material supply, said brokerage Hengyin Futures. Thailand’s meteorological agency has, however, warned of thundershowers, gusty winds and isolated heavy rains from August 10-12.
Meanwhile, the China Passenger Car Association upgraded its sales growth forecast to 6% for the year, up from its previous estimate of 5% in June, citing better-than-expected shipments in domestic and international markets. Automobile sales could influence the intensity of vehicle manufacturing, which involves using rubber-made tyres.0.2.
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