TOKYO: Japanese rubber futures recovered early losses to end higher on Thursday as investors looked for bargains, and on worries about supply disruption in Southeast Asia due to surging Covid-19 cases.
Osaka Exchange’s rubber contract for October delivery finished 2.0 yen, or 0.8%, higher at 247.4 yen ($2.3) per kg, after sliding to as low as 241.2 yen earlier in the session.
The rubber contract on the Shanghai futures exchange for September delivery rose 85 yuan to finish at 13,405 yuan ($2,082) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for June delivery last traded at 163.6 US cents per kg, up 0.5%.
“The market was down in early trade on fears over China’s price curb in industrial commodities, but bargain-hunting led to a recovery as the Osaka prices were relatively cheap, compared with physical prices in Thailand,” a Tokyo-based dealer said.
“Behind the gain was also concerns that a resurgence of the pandemic in Southeast Asia may slow rubber output,” the dealer said.
China will strengthen its management of commodity supply and demand to curb “unreasonable” increases in prices and prevent them from being passed on to consumers, the country’s cabinet said on Wednesday.