RUBBER-Japan futures dip as oil retreats; log second weekly gain
XLB•Singapore rubber contract also rises
The front-month rubber contract on the Singapore Exchange's SICOM platform for November delivery STFX6 last traded at 235.2 U.S. cents per kg, up 1% as of 0703 GMT.
($1 = 159.4300 yen)
($1 = 6.7210 Chinese yuan)
Oil moves and tire demand pressure the market
Oil prices fell on Friday and are on track to snap a two-week winning streak, despite settling higher in the previous session following a report that U.S. President Donald Trump is not interested in returning to previous deal terms with Iran. O/R
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Downstream tire makers are facing weaker new-order expectations, compounded by pressure from rising finished-goods inventories, resulting in softer operating rates, analysts from broker Guoxin Futures said in a note.
Semi-steel tire production utilisation eased slightly to 65.34% as of August 27 from 65.74% a week earlier, while all-steel tire utilisation edged up to 63.71% from 62.79% over the same period, data from rubber information provider Qinrex showed.
Japanese rubber futures fall as oil prices retreat
Japanese rubber futures fell on Friday, following a drop in oil prices, while softer demand for downstream tires weighed on the market, though the contract gained for a second consecutive week.
- The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: was down 1.8 yen, or 0.41%, at 442.6 yen ($2.78) per kg.
- The contract gained 0.82% this week.
