Japan rubber futures gain as Thai prices rise and supply stays tight

what happened

Newsmetry API reported that Japanese rubber futures moved higher on Tuesday as physical prices in Thailand strengthened and supply appeared constrained. The March Osaka Exchange contract added 3.1 yen, or 0.67%, to 462.9 yen ($2.92) per kg by 0220 GMT. Trading had been suspended on Monday because of a holiday.

The January rubber contract on the Shanghai Futures Exchange lost 110 yuan, or 0.53%, reaching 20,670 yuan ($3,087.70) per metric ton. November’s most-traded butadiene rubber contract on the SHFE dropped 415 yuan, or 2.5%, to 16,185 yuan per ton. Thailand’s benchmark export prices for RSS3 smoked sheet and block rubber increased 1.34% and 1.03%, respectively.

Guangzhou Futures analysts said near-term warehouse receipts for natural rubber remained scarce. The Shanghai exchange said inventories at its monitored warehouses were down 0.2% from the previous update issued on September 30. Malaysia’s natural rubber exports declined 18.2% month-on-month in August to 33,426 tons, while output rose 9.6% to 29,510 tons.

China’s passenger vehicle sales fell 28.1% year-on-year in September to 1.63 million units, following a 23.7% drop in August. The EU and China agreed to cap Chinese hybrid-car imports at 350,000 vehicles annually, with the measures due to begin in early December. The January SICOM rubber contract on the Singapore Exchange last traded at 262 U.S. cents per kg, up 0.3%. Exchange rates were $1 = 158.2900 yen and $1 = 6.6943 yuan.

why it matters

Natural rubber prices are being pulled in opposite directions: lean inventories and firmer Thai physical markets offer support, while weaker Chinese auto demand and EU import limits weigh on consumption prospects.

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