Japan rubber futures slide
Japanese rubber futures slid on Wednesday, tracking a retreat in the Shanghai market amid concerns over weaker demand in top buyer China, and as key messages at Beijing’s agenda-setting meeting failed to meet investors’ expectations.
Japanese rubber futures slid on Wednesday, tracking a retreat in the Shanghai market amid concerns over weaker demand in top buyer China, and as key messages at Beijing’s agenda-setting meeting failed to meet investors’ expectations.
The Osaka Exchange (OSE) rubber contract for May delivery finished 4.5 yen, or 1.9%, lower at 238.0 yen ($1.6) per kg. The rubber contract on the Shanghai futures exchange (SHFE) for January delivery fell 145 yuan to finish at 13,405 yuan ($1,866) per metric ton.
“Trades at both Shanghai and Osaka markets have been lacklustre since mid-November due to bearish demand outlook for China,” a Tokyo-based trader said.
“Rubber prices are expected to stay near the current levels until we see fresh buying in Shanghai, possibly at around New Year, to build up inventory before the industry moves into its ‘wintering season’,” he said, referring to the dry winter season when output drops.
China will focus on boosting effective demand next year, and make concerted efforts to spur domestic demand, state media said, citing the annual Central Economic Work Conference held from Dec. 11-12. Oil prices extended losses on Wednesday after falling more than 3% on concerns of oversupply.
The US dollar was quoted around 145.82 yen, compared with around 145.36 yen on Tuesday afternoon. The front-month rubber contract on Singapore Exchange’s SICOM platform for January delivery last traded at 142.5 US cents per kg, down 1.0%.
Read more at Business Recorder