SINGAPORE: Japanese rubber futures advanced on Friday, marking their third consecutive weekly gain with adverse weather in Thailand and China raising supply concerns, even as sluggish demand and high inventories capped the upside.
The Osaka Exchange (OSE) rubber contract for December delivery ended daytime trade up 1.6 yen, or 0.52%, at 312.1 yen ($2.16) per kg. The contract has climbed 0.77% this week.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery dipped 50 yuan, or 0.36%, to 14,005 yuan ($1,955.08) per metric ton.
The most active August butadiene rubber contract on the SHFE gained 5 yuan, or 0.04%, to 11,275 yuan ($1,573.97) per ton. Top rubber producer Thailand’s meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows.
China’s ‘Sanfu Season’, a period of intense heat which typically begins in mid-July and lasts through late August, has arrived unusually early this year in eastern China. Beyond damaging crops and eroding farm incomes, these rising temperatures can also impact manufacturing hubs and interfere with operations in key port cities.