SINGAPORE: Japanese rubber futures rose slightly on Monday on higher commodity and crude prices.
The Osaka Exchange rubber contract for August delivery ended up 1.7 yen, or 0.7%, at 263.0 yen ($2.28) per kg.
Heavy rains over the weekend caused flooding in southern regions of Thailand, which affected the production of raw materials, a Singapore-based trader said.
Thai rubber sheet prices hit 75.90 baht ($2.32) per kg on Monday, their highest level since May 2021.
Oil prices surged following escalating sanctions against Russia over its invasion of Ukraine, leading President Vladimir Putin to put his country’s nuclear deterrent on high alert.
Synthetic rubber is derived from crude oil, and a higher oil market also serves as a driver for natural rubber prices. The natural rubber market is also benefiting from higher oil prices, as this could lead to a move away from synthetic rubber.
The rubber contract on the Shanghai futures exchange for May delivery ended down 185 yuan at 13,870 yuan ($2,197.85) a tonne on Monday, hitting the lowest since Nov. 10 at 13,815 yuan more early in the session.
The first-month rubber contract on the Singapore Stock Exchange’s SICOM platform for March delivery last traded at 182.5 US cents per kg, down 0.5%.