SINGAPORE: Japanese rubber futures ticked up on Wednesday, as worsening weather in top producer Thailand sparked supply concerns, though the prospect of fresh tariffs from US President Donald Trump capped gains.
The Osaka Exchange (OSE) rubber contract for June delivery ended daytime trade 3.6 yen higher, or 0.95%, at 382.1 yen ($2.45) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for March delivery closed down 180 yuan, or 1.02%, to 17,435 yuan ($2,394.46) per metric ton. The most active February butadiene rubber contract on the SHFE fell 95 yuan, or 0.63%, to 14,930 yuan ($2,050.43) per metric ton.
“Rubber prices remain supported by rainy weather, which is limiting raw material supplies, coupled with strong physical demand from Chinese dealers,” said a Singapore-based trader. Thailand’s meteorological agency warned on Tuesday of heavy rains that may cause flash flooding from Jan. 27 to 28.
In top consumer China, downstream enterprises still have demand for stocking, though imported cargoes will arrive at Chinese ports in late January, boosting supply, Chinese consultancy Jinlianchuang said in a note.
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