Japan futures hit 6-week high on firmer synthetic prices, supply concerns
Updates closing prices and adds details
SINGAPORE, Aug 20 (Reuters) -
Japanese rubber futures rose to a six-week peak on Tuesday, buoyed by higher synthetic rubber prices and global supply disruptions, while a softer yen also lent support to the market.
The Osaka Exchange (OSE) rubber contract for January delivery JRUc6, 0#2JRU: closed up 4.5 yen, or 1.38%, at 331 yen ($2.25) per kg.
The contract hit an intraday high of 332.0 yen, its strongest level since July 4.
The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 rose 175 yuan, or 1.09%, to finish at 16,325 yuan ($2,285.13) per metric ton.
The most active October butadiene rubber contract on the SHFE SHBRv1 was up 295 yuan, or 2.06%, at 14,605 yuan ($2,044.37) per metric ton.
Raw material output remains low, while destocking has begun, as the rate of warehousing in Qingdao has been significantly reduced due to customs clearance issues, Chinese commodities data provider Longzhong Information said in a note.
Natural rubber prices will fluctuate as there is no visibly positive expectation for short-term demand, said Longzhong Information.
China left benchmark lending rates unchanged at a monthly fixing on Tuesday.
The decision has disappointed a section of speculative traders hoping for a further rate cut to boost the momentum of China's economic recovery, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber.
The Japanese yen JPY=EBS was slightly weaker at 146.98 per dollar, ahead of Bank of Japan Governor Kazuo Ueda's appearance in parliament on Friday.
Ueda is expected to discuss the BOJ's rate hike last month, and investors will focus on whether he sticks to his recent hawkish tone. USD/
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. FRX/
The front-month September rubber contract on Singapore Exchange's SICOM platform STFc1 last traded at 174.8 U.S. cents per kg, up 0.4%.
($1 = 146.9700 yen)
($1 = 7.1440 yuan)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu
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