Japan rubber futures rise slightly

BEIJING: Japanese rubber futures rose marginally for a third session on Tuesday, supported by a technical rebound following last week’s decline, despite lingering weather concerns in key producing regions.

The Osaka Exchange (OSE) rubber contract for May delivery was up 0.06 percent at 327.6 yen (USD2.10) per kg. The contract had fallen 5.1 percent last week.

“After the surprising dip last week for futures despite flooding across several producing regions, such as Indonesia, Thailand and Sri Lanka, it seems there was some technical rebound and support in futures,” said Farah Miller, founder of Helixtap Technologies.

“For now, physical remains at a slight premium to futures, although buyers are treading carefully amid uncertain demand and also the end-of-year holiday season approaching.”

The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery dropped 0.76 percent to 14,985 yuan (USD2,119.46) per metric ton.

The most-active January butadiene rubber contract on the SHFE lost 0.48 percent to 10,450 yuan per ton.

The European Commission could announce a package to support the local automotive sector, including a possible watered down version of its 2035 combustion engine phase-out, on December 16, a source said.

The move comes as automakers face weaker-than-expected demand for battery electric vehicles and intensifying Chinese competition.

In China, annual car sales dropped 8.5 percent in November in a second straight monthly decline, their biggest fall in 10 months amid a waning scramble to buy vehicles before government subsidies dwindle at year-end.

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