SINGAPORE: Japanese rubber futures rose for a third straight session on Thursday, supported by heavy rain warnings in top producer Thailand, although gains were limited by BYD’s lowered sales targets. The Osaka Exchange (OSE) rubber contract for February delivery was up 1.1 yen, or 0.35percent, at 319.8 yen (USD2.17) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery gained 25 yuan, or 0.16 percent, to 15,960 yuan (USD2,231.26) per metric ton.
The most-active October butadiene rubber contract on the SHFE fell 95 yuan, or 0.8 percent, to 11,810 yuan per ton. Thailand’s meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows in its weather forecast from September 4-10. China’s services activity expanded at the quickest pace in 15 months in August, buoyed by firmer domestic demand and a rebound in exports, a private-sector survey showed on Wednesday.
Amid growing competition in the automobile industry, electric-vehicle maker BYD has slashed its sales target for the year by as much as 16percent to 4.6 million vehicles, representing its slowest annual growth since 2020.
Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres. Oil prices extended losses as the market keeps an eye on the weekend meeting of OPEC+, where they are expected to consider another increase in output targets.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. The dollar edged up 0.1 percent against the yen to 148.25.
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers.
The front-month rubber contract on Singapore Exchange’s SICOM platform for September delivery last traded at 174.6 US cents per kg, down 0.2percent.
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