SINGAPORE: Japanese rubber rose for a ninth consecutive session on Monday, hitting its highest since March, as strong car sales buoyed sentiment.
The Osaka Exchange (OSE) rubber contract for June delivery was up 4.4 yen, or 1.27 percent, at 349.9 yen (USD2.23) per kg. The contract touched 350.8 yen earlier in the session, its highest since March 28. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery rose 165 yuan, or 1.06 percent, to 15,790 yuan (USD2,261.76) per metric ton. The most active February butadiene rubber contract on the SHFE rose 95 yuan, or 0.82 percent, to 11,645 yuan (USD1,668.03) per metric ton. Rising global automobile sales boosted demand for tyre manufacturing, lending support to rubber prices.
Global EV sales rose 28 percent last year and China’s BYD outsold for the first time on an annual basis, helped by rapid growth in Europe, where the Chinese automaker has been widening its lead over the US rival.
In India, leading carmakers reported a strong rise in December sales, with market leader Maruti Suzuki’s total sales to domestic dealers jumping 37percent to a record 178,646 units.
The Nikkei 225 climbed more than 3.3 percent to near a record high reached two months ago, as markets reopened for the first trading day after the New Year.
Volatile oil prices drifted lower on Monday, as adequate global supplies offset concerns about supply disruptions after the United States captured Venezuelan President Nicolas Maduro in an audacious raid over the weekend.
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 February delivery last traded at 183 US cents per kg, up 0.7 percent as of 0700 GMT.
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