Japanese rubber futures snap four-day rally on softer China demand
SINGAPORE: Japanese rubber futures snapped a four-day winning streak on Thursday as demand slowed for the tyre-making material in top consumer China, outweighing supply woes sparked by wet weather.
The Osaka Exchange (OSE) rubber contract for November delivery closed down 6.7 yen, or 2.2%, at 298.3 yen ($2.05) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery inched up 30 yuan, or 0.21%, to 14,030 yuan ($1,951.21) per metric ton.
The most active July butadiene rubber contract on the SHFE edged up 110 yuan, or 0.94%, to 11,770 yuan ($1,636.90) per metric ton. On the demand front, the operation rates of tyre companies is low given high inventories and the current off season, said Chinese rubber sales portal Natural Rubber Network.
Capacity utilisation rates of semi-steel tyre enterprises this week fell 10% from the same period last year, according to Chinese commodities data provider Longzhong Information. Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres. Meanwhile, banks in China’s Henan province said on Tuesday they will stop giving car dealers high commissions for auto loans taken out by buyers.
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