SINGAPORE: Japanese rubber futures climbed for a 10th consecutive session on Thursday, supported by a softer yen and supply-side worries.
The Osaka Exchange (OSE) rubber contract for April delivery was up 0.72percent at 334.3 yen per kg, as of 0237 GMT.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery dipped 1.04percent to 15,250 yuan (USD2,143.51) per metric ton.
The most active January butadiene rubber contract on the SHFE lost 0.71percent, to 10,520 yuan per metric ton.
Recent gains were fuelled by Thai weather disruptions and anticipated raw material tightness, said Farah Miller, founder of independent rubber-focused firm Helixtap Technologies.
Top rubber producer Thailand’s meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows from November 19-22.
The yen fell 1 percent to a 10-month low of 157.18 per dollar.
A weaker currency makes yen-denominated assets more affordable to overseas buyers. Oil prices edged up on a bigger-than-expected draw in US crude stockpiles. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Winter stockpiling has supported raw material prices, while domestic downstream demand from tyres remains stable, said Chinese broker Everbright Futures.
The Dutch government suspended its intervention at chipmaker Nexperia, a move welcomed by China. Still, automakers have said that supply chain disruptions are not resolved, with a possibility of further negative effects on production.
Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres. The front-month rubber contract on Singapore Exchange’s SICOM platform for December delivery last traded at 171.1 US cents per kg, down 1percent.
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