SINGAPORE: Japanese rubber futures rose for an eighth straight session on Tuesday, lifted by a weak yen and Thai weather risks, though softer signals from China’s electric vehicle sector capped gains.
The Osaka Exchange (OSE) rubber contract for April delivery added 1.5 yen, or 0.46percent, to 326.6 yen(USD2.11) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 50 yuan, or 0.33 percent, to 15,295 yuan (USD2,150.41) per metric ton.
The most active January butadiene rubber contract on the SHFE gained 95 yuan, or 0.91percent, to 10,505 yuan per metric ton. The yen rebounded slightly from nine-month lows reached earlier in the session, with the dollar falling 0.3 percent against the yen. A weaker currency makes yen-denominated assets more affordable to overseas buyers. Top rubber producer Thailand’s meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows in its weather forecast from November 17-23.
Chinese EV maker XPeng forecast fourth-quarter growth below estimates on Monday amid a prolonged price war and intensifying competition in the world’s largest auto market, despite record deliveries in October. Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres. Lower automobile prices, driven by fierce competition, exert a downward pressure on rubber tyre prices.
Oil prices dipped as supply concerns continued to ease with the resumption of loadings at a Russian export hub, which was briefly halted by a Ukrainian drone and missile strike. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. The front-month rubber contract on Singapore Exchange’s SICOM platform for December delivery last traded at 171.9 US cents per kg, down 0.6percent.
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