SINGAPORE: Japanese rubber futures ticked down on Friday, posting a sixth consecutive weekly loss, as expectations of increased supply outweighed a possible de-escalation in trade tensions between the US and top consumer China.
The Osaka Exchange (OSE) October rubber contract closed down 0.7 yen, or 0.24%, at 289.3 yen ($2.02) per kg, losing 0.55% this week. The September rubber contract on the Shanghai Futures Exchange (SHFE) rose 120 yuan, or 0.82%, to 14,720 yuan ($2,020.48) per metric ton.
The most active May butadiene rubber contract on the SHFE gained 175 yuan, or 1.57%, to 11,335 yuan ($1,555.85) per metric ton.
Harvesting in domestic production areas is gaining momentum, leading to increased market optimism about supply growth, Chinese financial information site Tonghuashun Information said.
Rubber crops typically witness a low-production season from February to May, followed by a peak harvesting period that lasts through September.
The United States is continuing to signal that it hopes to negotiate with China, supporting commodity markets in the short term, Tonghuashun added.
On Thursday, US President Donald Trump asserted that trade talks with China are underway, pushing back against Chinese claims that no discussions have taken place to ease the ongoing trade war. China is considering exempting some US imports from its 125% tariffs and is asking businesses to identify goods that could be eligible.
Potential de-escalation in trade tensions sent Chinese stocks higher on Friday, despite no signal of concrete progress on trade deals.
The dollar climbed 0.7% to 143.665 yen, making yen-denominated assets more affordable to overseas buyers. The front-month rubber contract on the Singapore Exchange’s SICOM platform for May delivery last traded at 168.1 US cents per kg, down 0.7%.