SINGAPORE: Japanese rubber futures rose for a third straight session on Wednesday, reversing earlier losses, as strong raw material prices outweighed weaker economic data from top consumer China. The May Osaka Exchange (OSE) rubber contract closed up 2.0 yen, or 0.79%, at 367.9 yen ($2.42) per kg. The May rubber contract on the Shanghai Futures Exchange (SHFE) rose 255 yuan, or 1.44%, to finish at 17,940 yuan ($2,474.45) per metric ton. Top producer Thailand’s meteorological agency warned of heavy to very heavy rains that may cause flash flood from Nov. 27 to Dec. 1.
The wet weather may impact supply from Thailand, the world’s top rubber producer. The price of Thai raw material continues to support natural rubber, said Chinese futures trading site Beite Futures in a note.
China’s industrial profits fell again in October but less sharply than the previous month as deflation pressures dragged and demand remained soft in the crisis-hit economy. Separate economic indicators earlier this month pointed to broadly soft demand, with consumer prices at their weakest in four months while industrial output continued to trend downward.
Chinese state media warned US President-elect Donald Trump his pledge to slap additional tariffs on Chinese imports could drag the world’s two largest economies into a mutually destructive tariff war.
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