Japan rubber futures rebound on supply concerns
SINGAPORE: Japanese rubber futures rose on Tuesday, buoyed by supply concerns amid heavy rain in top producing regions and a potential boost in demand from automobile manufacturers. The Osaka Exchange (OSE) rubber contract for February delivery was up 2.9 yen, or 0.92 percent, at 317.7 yen (USD2.16) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 30 yuan, or 0.19 percent, to 15,870 yuan (USD2,218.68) per metric ton. The most active October butadiene rubber contract on the SHFE lost 45 yuan, or 0.38 percent, to 11,820 yuan per metric ton.
Recent market movements are likely driven by expectations that raw material supply will remain tight over the next two weeks due to heavy rains in key producing countries, said Farah Miller, founder of independent rubber-focused firm Helixtap Technologies.
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