Japanese Rubber Futures Surge on Strong Demand, Oil Price Support
Japanese rubber futures saw significant gains this week, logging their biggest weekly increase in five months. The Osaka Exchange (OSE) rubber contract for January delivery edged up 0.6 yen, or 0.14%, to 439 yen per kg, marking a 4.4% rise for the week. This boost follows last week's decline and marks the contract's largest gain since April.
The Shanghai Futures Exchange (SHFE) also saw gains in its rubber contracts, with the January delivery price increasing by 150 yuan, or 0.82%, to 18,500 yuan per metric ton. The October butadiene rubber contract on the SHFE rose by 100 yuan, or 0.69%, to 14,625 yuan per ton.
China's rubber tyre output saw a notable rise of 8.1% year-on-year in July, reaching 102.66 million units, while synthetic rubber production increased by 7.6% to 792,000 tons during the same period. This points to stronger demand from downstream industries.
The natural rubber market is closely tied to oil prices, as it competes with synthetic rubber for market share. Oil prices have been on an upward trend due to supply disruptions in key producing regions, including the Middle East.