SINGAPORE: Japanese rubber futures moved in a narrow range on Tuesday, as traders weighed firmer physical prices in top producer Thailand against a dip in oil prices.
The Osaka Exchange (OSE) rubber contract for March delivery was up 2.3 yen, or 0.51 percent, at 454.5 yen (USD2.87) per kg.
The price of Thailand’s benchmark export-grade smoked rubber sheet (RSS3) and block rubber were up 0.65 percent and 1.25 percent, to stand at 96.57 baht per kg and 88.44 baht per kg, respectively.
Continued rainfall in Southeast Asia hampered rubber tapping, leading to stronger physical prices and boosting market sentiment, said analysts from broker Guoyuan Futures in a note.
Oil prices fell on Tuesday as resilient Middle Eastern crude exports and a G7 emergency stockpile release eased supply concerns, though lingering security risks in the region capped further losses.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. Elsewhere, Britain is considering imposing tariffs on Chinese electric vehicle imports amid concerns that Beijing is flooding the market with state-subsidised cars, the Times newspaper reported on Sunday.
Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
The front-month rubber contract on Singapore Exchange’s SICOM platform for December delivery was last flat at 259.5 US cents per kg as of 0700 GMT.