Japan rubber futures track oil higher
SINGAPORE: Japanese rubber futures rose on Tuesday, tracking gains in crude oil prices amid optimism over China’s policy measures to stabilise markets and an extension of a tariff truce between the United States and China.
The Osaka Exchange (OSE) rubber contract for January delivery was up 4.6 yen, or 1.45%, at 322 yen ($2.17) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 140 yuan, or 0.89%, to 15,860 yuan ($2,206.12) per metric ton.
The most-active September butadiene rubber contract on the SHFE gained 85 yuan, or 0.72%, to 11,825 yuan ($1,644.85) per ton.
China’s producer price index (PPI) fell 3.6% year-on-year in July, matching the near 2-year low recorded in June as extreme weather and global trade uncertainties contributed to price declines in some industries.
However, Xing Zhaopeng, senior China strategist at ANZ, expects that current “anti-involution” policy measures, designed to curb disorderly competition in sectors like autos, will begin to boost year-on-year PPI starting in August.
Lower automobile prices pressure rubber tyre prices.
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