Japanese rubber futures little changed amid robust China auto demand
SINGAPORE: Japanese rubber futures held steady on Thursday, supported by robust Chinese auto demand while currency market swings kept overseas buyers cautious.
The Osaka Exchange (OSE) rubber contract for March delivery was down 0.1 percent at 311.5 yen (USD2.06) per kg. The rubber contract on Shanghai Futures Exchange (SHFE) for January delivery increased 0.34 percent to 14,900 yuan (USD2,091.11) per metric ton.
Most-active November butadiene rubber contract on SHFE gained 3.05percent to 11,135 yuan per metric ton. Swedish truckmaker Scania opened its first fully-owned factory in China, which is expected to reach a production capacity of 50,000 vehicles, nearly double what its Brazilian plant produced last year.
The strong growth in automobile production and sales has driven up demand for tyres, which is expected to push up spot prices, said Chinese financial information site Tonghuashun Information.
The dollar slipped as much as 0.4percent to 150.51 yen , putting the psychologically key 150 line briefly in focus before bouncing back to close flat, with Sino-US trade frictions undercutting the dollar. A stronger currency makes yen-denominated assets less affordable to overseas buyers.
Oil prices rose around 1percent after US President Donald Trump said that India promised to stop buying Russian oil.
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