Japanese rubber futures rose on Monday, as higher oil prices, robust physical demand and steady growth in Chinese tyre exports underpinned the market.
The Osaka Exchange (OSE) rubber contract for December delivery edged up 1.2 yen, or 0.29%, to 421 yen ($2.60) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 105 yuan, or 0.62%, to 16,910 yuan ($2,493.07) per metric ton.
The most-active September butadiene rubber contract on the SHFE surged 490 yuan, or 3.92%, to 12,990 yuan per ton.
Oil prices surged over 4% as energy shipments via the Strait of Hormuz remained under threat, with the U.S. and Iran announcing renewed military strikes.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Strong physical demand and short-covering supported prices in a largely range-bound trading period last week, Japan Exchange Group said in a report on Monday.
Demand from China’s tyre makers also remained robust, with the industry’s exports rising 4.8% year-on-year to 8.51 million tons in June, valued at $20.54 billion, the report said, citing data from China’s General Administration of Customs.
The front-month rubber contract on Singapore Exchange’s SICOM platform for August delivery last traded at 215.5 U.S. cents per kg, up 0.4% as of 0703 GMT.