Japan rubber futures log largest weekly gain in 9 months on supply woes
Japanese rubber futures climbed on Friday, posting their biggest weekly gain since last September on weather concerns in Thailand and the potential for higher vehicle sales from Chinese auto expansion into African markets.
The Osaka Exchange (OSE) rubber contract for December delivery ended daytime trade up 8 yen, or 2.65%, at 309.7 yen ($2.15) per kg.
The contract surged 4.84% this week, marking its largest weekly gain since 27 September 2024.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 160 yuan, or 1.15%, to 14,045 yuan ($1,959.46) per metric ton.
The most active August butadiene rubber contract on the SHFE climbed 185 yuan, or 1.67%, to 11,275 yuan ($1,573.01) per metric ton.
Thailand's meteorological agency warned of heavy rains and floods from July 1-3.
In top consumer China, automakers are expanding into Africa, viewing it as an important market for global growth with significant long-term potential.
Japan rubber futures extend rise on Nikkei gain, supply concerns
Vehicle sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
Japan's Nikkei climbed 1.4%, surpassing the 40,000 mark for the first time in five months.
Meanwhile, oil prices headed for their steepest weekly decline since March 2023 on Friday, with traders and analysts seeing no material impact from the Mideast crisis on oil flow.
Natural rubber often takes direction from oil as it competes for market share with synthetic rubber, which is made from crude oil.
Chinese factories are preparing to pilot direct purchases of 300 tons of rubber from Thai farmers under an agreement that would cut tariffs from 20% to zero, Chinese commodities data provider Longzhong Information said.
front-month rubber contract on the Singapore Exchange's SICOM platform for July delivery last traded at 161.8 U.S. cents per kg, down 0.7%.
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