SINGAPORE: Japanese rubber futures inched up on Thursday amid stronger demand for the tire-making material in top consumer China, though a firmer yen and seasonal harvesting capped gains.
The Osaka Exchange (OSE) rubber contract for October delivery closed up 1.7 yen, or 0.53%, at 321.9 yen ($2.25) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery dipped 45 yuan, or 0.3%, to 14,810 yuan ($2,056.03) per metric ton.
The most active June butadiene rubber contract on the SHFE eased 40 yuan, or 0.33%, to 12,030 yuan ($1,670.09) per metric ton. The capacity utilisation rate of China’s semi-steel and full-steel tire enterprises logged monthly rises of 24.5% and 18.19%, respectively, said Chinese commodities data provider Longzhong Information.
The dollar slipped as much as 0.4% to 143.15 yen, the weakest level since May 7. A stronger currency makes yen-denominated assets less affordable to overseas buyers. On the supply-side, the expectation of increased supply is heating up, and rubber prices may maintain a weak and volatile trend in the short term, Longzhong said.