SINGAPORE: Japanese rubber futures rose on Tuesday amid a weaker yen and favourable factory data, but logged their first monthly decline in 2024 and worst month since October 2022.

The Osaka Exchange’s (OSE) rubber contract for October delivery closed up 1.6 yen, or 0.52%, at 307 yen ($1.96) per kg. The contract snapped a three-month winning streak to end April 6.57% lower. It had gained 10.64% in March amid fears of supply tightness, which is now seen easing as the rubber harvesting season nears.

The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery closed down 175 yuan at 14,045 yuan ($1,938.90) per metric ton, ahead of the upcoming holidays.

The Japanese yen weakened 0.29% to 156.82 against the dollar. Japan’s March factory output grew more than expected, after automakers resumed production after safety scandals.

Top rubber consumer China’s April manufacturing activity expanded at a slower pace, an official factory survey showed, although a private survey showed activity expanded at the fastest pace in 14 months. “Although today’s PMI data can offer some relief, investor sentiment is still pressured by China’s weak consumer spending and dwindling exports,” said Jom Jacob, co-founder of India-based analysis firm What Next Rubber.

Concerns over prolonged high borrowing costs in the US also weighed on market sentiment, Jacob added.

China’s industrial profits fell in March and slowed gains for the quarter compared to the first two months, official data showed. The front-month rubber contract on Singapore Exchange’s SICOM platform for May delivery traded at 160.5 US cents per kg, down 0.3% on its last trading day. Financial markets in China and Singapore are closed on Wednesday for a holiday, and will re-open on May 6 and May 2 respectively.