Japanese rubber futures lower on weak auto demand
SINGAPORE: Japanese rubber futures slipped in early trade on Thursday, pressured by weak purchasing sentiment in the wake of declining profits in the automobile sector, though weather disruptions capped losses.
The Osaka Exchange (OSE) rubber contract for February delivery was down 1 yen, or 0.32percent, at 312 yen (USD2.10) per kg as of 0213 GMT. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 65 yuan, or 0.42percent, to 15,670 yuan (USD2,198.65) per metric ton.
The most active November butadiene rubber contract on the SHFE gained 55 yuan, or 0.48percent, to 11,600 yuan per ton. Despite some restocking of rubber tyres ahead of the Chinese National Day holiday, overall market purchasing sentiment is weak, particularly due to the sharp decline in profits in the automobile sector, leading to more cautious procurement of butadiene rubber, said Chinese market intelligence platform Tonghuashun Information.
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