Japan rubber futures tick up on technical rebound

BEIJING: Japanese rubber futures rose for a fourth consecutive session on Wednesday, supported by a technical rebound and firm Chinese economic data.

The Osaka Exchange (OSE) rubber contract for May delivery was up 0.09 percent at 330.7 yen (USD2.11) per kg.

The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery added 1.23 percent to 15,215 yuan (USD2,154.37) per metric ton.

The most-active January butadiene rubber contract on the SHFE gained 0.9 percent to 10,605 yuan per ton.

The yen was up 0.15 percent at 156.64 per dollar, after a 0.6 percent fall towards the 157 level in the previous session despite no obvious trigger.

China’s trade surplus topped USD1 trillion for the first time as manufacturers seeking to avoid President Donald Trump’s tariffs shipped more to non-US markets in November, with exports to Europe, Australia and Southeast Asia surging.

The country’s consumer price index (CPI) rose 0.7 percent from a year earlier, National Bureau of Statistics data showed, matching a 0.7 percent expansion in a Reuters poll of economists.

Oil prices held steady on Wednesday after falling about 1 percent in the previous session, as investors watched for progress in Russia-Ukraine peace talks and awaited a decision on US interest rates.

Concerns about a shortage of natural rubber supply due to adverse weather in major producer Thailand have also supported prices.

“I think it’s actually futures catching up with the physical market, which has been around USD1,740–USD1,750 per metric ton for Indonesian grades,” said Farah Miller, founder of Helixtap Technologies.

“Raw material levels in December and January, likely elevated due to post-flood normalisation, are reflected in the futures,” she added.

The front-month rubber contract on Singapore Exchange’s SICOM platform for January delivery last traded at 172.6 US cents per kg, up 0.8 percent.

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