Rubber futures continue along uncertain track

Tokyo –  Global rubber futures ended the trading week to 13 June "mixed to slightly higher" across major rubber exchanges, Japan Exchange Group (JPX) has reported.

In Osaka, Japan, OSE rubber future closed down 0.7% week-on-week, while on China’s SHFE and INE exchanges rubber gained 0.9% and 0.4% respectively, the market watcher noted.

On Singapore’s SICOM exchange, rubber closed 0.6% higher “on consumer buying amid tight-range trading,” JPX added in its latest weekly report on Far East markets.

Tokyo-based JPX went on to explain that rubber prices were briefly supported by a strong rally in crude oil after Israel launched strikes on Iran's nuclear installations.

Another factor, it said, was the easing of trade tensions between the US and China eased after the latter country agreed to resume shipments of rare-earth metals to the US.

Traders were also swayed by data from China, where total vehicle sales at the end of May rose by 96,727 units from April to 2,686,337 units, while commercial vehicle sales declined to 32,478 units.

In a review of rubber-related news, JPX noted that Malaysia had reported a 37% decline in rubber production in April to 18,008 tons – down from 28,739 tons in March.

In other news, WTI crude oil rose 13% to $72.98 per barrel w/w following the Israeli airstrikes, while US inflation data came in below market expectations which, said JPX, might provide the Fed with room to ease interest rates.