SINGAPORE: Japanese rubber futures climbed to a one-month high on Thursday, amid speculations of raw material shortages in Thailand and upbeat economic data from China.

The Osaka Exchange (OSE) rubber contract for April delivery was up 3.5 yen, or 1.3%, at 273.9 yen ($1.81) per kg at closing. The rubber contract on the Shanghai futures exchange (SHFE) for January delivery was up 155 yuan, or 1.7%, at a three-week high of 14,585 yuan ($2,010.31) per metric ton.

“Speculations about dwindling raw material supplies in Thailand have driven prices higher. Although there is some truth to the limited availability, the situation is not as dire as it may appear,” said a Singapore-based trader. “Elevated prices are not aligning with the actual dynamics of demand and supply,” the trader added.

“To gain clarity, we must analyse Thai export data for November and December” to assess whether this bullish trend will persist. China’s industrial output and retail sales growth beat expectations in October, but the underlying economic picture highlighted significant pockets of weakness with the crisis-hit property sector obstructing a full-fledged revival.

The Japanese yen continued to languish near the threshold of 150 to the US dollar, and last traded flat at 151.33 yen after mounting a recovery on Wednesday from its steepest declines against major peers in a year.

Japan’s economy contracted in July-September, snapping two straight quarters of expansion on soft consumption and exports.

The country’s exports grew for a second straight month in October but at a sharply slower pace due to slumping China-bound shipments of chips and steel.