Japanese Rubber Futures Edge Higher on Rebounding Oil Prices

Japanese rubber futures rose on Tuesday as oil prices rebounded from their previous decline. The Osaka Exchange (OSE) saw its rubber contract for January delivery increase by 5.1 yen, or 1.23%, to 419.3 yen per kg.

The Shanghai Futures Exchange (SHFE) also reported gains, with the September delivery contract rising by 265 yuan, or 1.61%, to 16,685 yuan per metric ton.

The increase in oil prices is a key factor driving up rubber futures, as natural rubber often competes with synthetic rubber for market share. Synthetic rubber is made from crude oil, and its production can be affected by changes in oil prices.

Rising seasonal supply and weak tyre demand are still weighing on the market, however, capping gains in rubber futures.