SHANGHAI: Japanese rubber futures snapped a five-session winning streak on Monday, weighed down by weak tyre demand ahead of holidays in top consumer China, although losses were limited by higher oil prices.
The Osaka Exchange (OSE) rubber contract for March delivery was down 7.1 yen, or 1.57percent, at 445 yen (USD2.82) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery fell 150 yuan, or 0.77percent, to 19,275 yuan (USD2,870.31) per metric ton.
The most-active November butadiene rubber contract on the SHFE rose 140 yuan, or 0.91percent, to 15,515 yuan per ton. Tyre demand will keep declining during maintenance shutdowns over China’s long holiday, keeping rubber demand weak in the short term, analysts from broker Huatai Futures said in a note.
Rubber prices broke through multi-year highs last week, though the 14-day relative strength index at 73.4percent signals overbought conditions and occasional corrections are expected, Japan Exchange Group said in a report on Monday.
Brent crude rebounded more than 3percent on Monday after US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz, keeping tensions in the Middle East elevated.
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