SINGAPORE: Japanese rubber futures surged on Friday on a softer supply outlook and Chinese stimulus hopes, though drifted sideways for the week as investors digested the impact of mounting tariffs.
The Osaka Exchange (OSE) August rubber contract closed up 12.5 yen, or 3.71%, at 349.7 yen ($2.35) per kg, holding steady for the week. The May rubber contract on the Shanghai Futures Exchange (SHFE) ticked up 40 yuan, or 0.23%, to 17,180 yuan ($2,374.04) per metric ton.
The most active April butadiene rubber contract on the SHFE edged 5 yuan higher, or 0.04%, to 13,770 yuan ($1,902.83) per ton. Chinese equities rose, led by consumer shares, in anticipation of a press conference next week for additional measures to enhance domestic consumption.
Japanese rubber futures strengthened on tightening supply from Thailand, said Chinese financial data provider Tonghuashun Information. Rubber crops usually undergo a season of low production from February to May, before a peak harvesting period until September. From March 17-19, the winds in Thailand’s southern region will strengthen with more isolated heavy rain, said the country’s meteorological agency.
Still, sentiment in equity markets are bearish, weighing on rubber prices, said broker Hexun Futures. US automaker Tesla has warned it and other major American exporters are exposed to retaliatory tariffs that could be levelled in response to Trump’s aggressive use of tariffs.
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 March delivery last traded at 196.3 US cents per kg, up 0.7%.
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