Japan rubber futures retreat on weak tyre demand ahead of China holidays
OSE March rubber fell 1.57% to 445 yen/kg; SHFE January rubber fell 0.77% to 19,275 yuan/ton.
(Recasts, updates prices to market close) By Emily Ou Yong Sept 28 (Reuters) — Japanese rubber futures snapped a five-session winning streak on Monday, weighed down by weak tyre demand ahead of holidays in top consumer China, although losses were limited by higher oil prices. 82) per kg. 31) per metric ton. 91%, to 15,515 yuan per ton.
Tyre demand will keep declining during maintenance shutdowns over China's long holiday, keeping rubber demand weak in the short term, analysts from broker Huatai Futures said in a note. 4% signals overbought conditions and occasional corrections are expected, Japan Exchange Group said in a report on Monday. Brent crude rebounded more than 3% on Monday after US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz, keeping tensions in the Middle East elevated.
O/R Higher oil and butadiene prices have lifted synthetic rubber costs, boosting demand for natural rubber as a substitute, analysts from broker Guoyuan Futures said in a note. S. 6% as of 0705 GMT. It touched its highest since May 22, 2013, earlier in the day.
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