SINGAPORE: Japanese rubber futures declined on Tuesday amid subdued market activity, weighed down by thin trading due to China’s National Day holiday and weak international demand, though a softer yen limited further losses.
The Osaka Exchange (OSE) rubber contract for March delivery ended the day down 1.6 yen, or 0.52percent, at 303.4 yen (USD2.01) per kg.
Due to the absence of trading volumes during China’s Golden Week, futures prices have reflected muted international demand despite some support from recent yen fluctuations, said Farah Miller, founder of independent rubber-focused firm Helixtap Technologies.
Additionally, producers are waiting for raw material prices to decrease in line with futures in order to improve their margins, while the market has also factored in a delay to the EU’s deforestation regulation, resulting in more conservative pricing, Miller added. The Chinese National Day holiday runs from October 1-8.
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