Japanese rubber futures down on weak demand
Japanese rubber futures hit a one-week closing low on Monday, falling for a third consecutive session, weighed down by weak Chinese demand and declining crude futures. The Osaka Exchange (OSE) rubber contract for April delivery closed 0.97% lower at 256.3 yen ($1.71) per kg, its lowest closing since Oct. 23. The rubber contract on the Shanghai futures exchange (SHFE) for January delivery was down 310 yuan, or 2.14%, at 14,205 yuan ($1,941.10) per metric ton.
Japanese rubber futures hit a one-week closing low on Monday, falling for a third consecutive session, weighed down by weak Chinese demand and declining crude futures. The Osaka Exchange (OSE) rubber contract for April delivery closed 0.97% lower at 256.3 yen ($1.71) per kg, its lowest closing since Oct. 23. The rubber contract on the Shanghai futures exchange (SHFE) for January delivery was down 310 yuan, or 2.14%, at 14,205 yuan ($1,941.10) per metric ton.
The supply of natural rubber from the world’s largest producer Thailand remains disrupted by continuing heavy rainfalls, but the market sentiment is outweighed by weak demand from key buyer China, said Jom Jacob, co-founder of India-based analyst firm What Next Rubber.
The yen was last 0.1% lower at 149.75 per dollar, getting a slight reprieve after having struck a one-year trough of 150.78 per dollar last week. The BOJ kicks off its two-day monetary policy meeting on Monday, with mounting speculation that the dovish central bank could hike its existing yield cap at this week’s meeting.
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