SINGAPORE: Japanese rubber futures eased in a volatile session on Wednesday as trade concerns dented the outlook for global markets, outweighing tighter supply prospects.
The Osaka Exchange (OSE) rubber contract for August delivery fell 3.9 yen, or 1.12%, to 343 yen ($2.29) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery shed 50 yuan, or 0.3%, to close at 16,865 yuan ($2,331.58) per metric ton. The most active May butadiene rubber contract on the SHFE rose 55 yuan, or 0.4%, to 13,855 yuan ($1,915.45) per ton. “Rubber markets remain volatile, influenced by global sentiment and tariff policy uncertainties,” a Singapore-based trader said. US tariffs will inflict significant harm on the US economy as other countries hit back with “high tariffs” on American goods, Chinese state media warned, leaving the door open for more measures from Beijing as another wave of levies looms.
Growth in key economies is anticipated to slow notably in this period and the market has recently seen profit-taking activities, the trader added. Asian stocks were subdued on the day as shifting geopolitical landscape kept risk appetite in check. On the supply side, overseas rubber plantations have stopped harvesting and prices of raw materials are fluctuating at high levels, lending some support to prices, 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 that lasts until September.
The front-month rubber contract on Singapore Exchange’s SICOM platform for March delivery last traded at 194.7 US cents per kg, down 0.6%.
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