SINGAPORE: Japanese rubber ticked up for a third straight session on Thursday as worsening weather in Thailand threatened supply prospects, while support from top consumer China boosted the equities markets.
The Osaka Exchange (OSE) rubber contract for June delivery ended daytime trade 2.4 yen higher, or 0.63%, at 384.5 yen ($2.46) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for March delivery dipped 100 yuan, or 0.57%, to close at 17,310 yuan ($2,377.09) per metric ton. The most active February butadiene rubber contract on the SHFE fell 50 yuan, or 0.34%, to 14,770 yuan ($2,028.29) per ton.
The weather in Thailand may continue to worsen and the price of raw materials is likely to rise, said Chinese consultancy Natural Rubber Network.
Top producer Thailand’s meteorological agency warned of heavy rains, which may cause flash floods and overflows from Jan. 27-29.
Chinese stocks rose after Beijing unveiled plans to encourage insurance companies to purchase shares listed on the mainland. Coming on the heels of Trump’s threat to slap a 10% punitive duty on Chinese imports, the coordinated moves underlined Beijing’s intent to prop up markets amid possible geopolitical tensions.
More than half of American businesses in China said they were concerned about potential trade turmoil between the US and China, a survey showed.
Additionally, Trump is considering ending a trade perk, the “de minimis” exception on import tariffs, as he accuses China of unfair trade practices. “De minimis” describes the US waiver of standard customs procedures and tariffs on imported items worth less than $800 that are shipped to individuals.
The front-month rubber contract on Singapore Exchange’s SICOM platform for February delivery last traded at 198.7 US cents per kg, up 0.1%.
Comments
Comments are closed.