SINGAPORE: Japanese rubber futures rose for a ninth session on Friday to close at an almost 13-year high, logging its best week in over three years amid wintering season and weather concerns in key producing countries.

The Osaka Exchange (OSE) rubber contract for August delivery finished up 19 yen, or 5.71%, at 352 yen ($2.26) per kg, the highest close since Sep. 22, 2011.

It climbed to 352.2 yen earlier in the session, the highest intraday price recorded since Feb. 1, 2017. The contract logged a weekly gain of 12.46%, the highest week-on-week rise since October 2020. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery rose 435 yuan to finish at 14,790 yuan ($109.80) per metric ton.

“Rubber prices are trending upwards due to rising raw material costs and supply constraints from key producers such as Thailand, Africa and Vietnam amid their wintering period,” a Singapore-based trader said.

Thailand’s benchmark smoked rubber sheet (RSS3) hit their highest levels since February 2017. Its export-grade rubber sheet was quoted at 97.22 Thai baht ($2.72) per kg on a free-on-board basis on Friday. “Raw material for RSS3 has continued to increase this week, which is normal in wintering,” said Farah Miller, CEO of Helixtap Technologies, an independent rubber-focused data company.

Rubber futures are catching up to physical levels and will do so as long as the physical demand remains, Miller added.

Thailand’s meteorological agency warned of hot weather accompanied with thunderstorms in various regions from March 14-20. The yen weakened overnight against the dollar to trade at 148.22.

Japan’s annual labour talks with major firms ended with 5.28% pay raises, the highest in 33 years, the country’s largest union group said on Friday, reinforcing views that the county’s central bank will soon shift away from a decade-long stimulus programme.

The front-month rubber contract on Singapore Exchange’s SICOM platform for April delivery last traded at 168 US cents per kg, up 1.82%.