SINGAPORE: Japanese rubber futures gained on Monday, underpinned by a weaker yen and higher rubber imports in top consumer China, though US tariff concerns curbed gains.
The Osaka Exchange (OSE) rubber contract for August delivery ended daytime trade 1.5 yen higher, or 0.43%, to 351 yen ($2.34) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery rose 130 yuan, or 0.77%, to 17,095 yuan ($2,356.31) per metric ton. The most active May butadiene rubber contract on the SHFE advanced 75 yuan, or 0.55%, to 13,680 yuan ($1,885.60) per metric ton. The dollar gained 0.35% to 149.83 yen. A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. China imported 1.424 million tons of natural and synthetic rubber in January and February 2025, a 23.3% year-on-year increase, said Chinese rubber sales portal Natural Rubber Network. Still, Chinese Premier Li Qiang urged countries to open their markets to combat “rising instability and uncertainty” at a business forum in Beijing on Sunday, as China braces for further US tariffs. The US plans to impose sweeping reciprocal tariffs on multiple trade partners on April 2.
On the supply-side, the current tight outlook will ease as main production areas resume harvesting and cargo ships arrive, Chinese financial information site Tonghuashun Information said. Rubber usually undergoes a season of low production from February to May, before a peak harvesting period that lasts until September. Meanwhile, from March 24-29, South of Thailand will face isolated thundershowers, the country’s meteorological agency said, adding that farmers should be wary of crop damage.
The front-month rubber contract on Singapore Exchange’s SICOM platform for April delivery last traded at 199.3 US cents per kg, up 1.2%.
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