Japan futures remain at 13-year high on soft supply, stronger demand
Updates closing prices and adds analyst quote
SINGAPORE, Aug 29 (Reuters) -
Japanese rubber futures rallied for the eighth straight session on Thursday, remaining at 13-year high, on expectations of weaker global supply and firmer demand.
The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: closed up 2.1 yen, or 0.56%, at 373.9 yen ($2.59) per kg.
The contract hit an intraday high of 375.5 yen, its strongest level since Sep. 1, 2011.
The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 fell 35 yuan, or 0.21%, to finish at 16,640 yuan ($2,341.22) per metric ton.
The four-month period from September to December is usually the peak season for global rubber supply, but tight availability is expected to persist throughout the period this year, said Jom Jacob, chief analyst at Indian analysis firm What Next Rubber.
Imminent seasonal shortage, combined with low inventories resulting from the long period of weaker supply from January toAugust, can prompt aggressive buying by manufacturing companies and major traders, added Jacob.
The prices of Thailand's benchmark export-grade smoked rubber sheet (RSS3) RUB-RSS3C-BKK and block rubber RUB-STR20C-BKK were up 2.04% and 0.41%, to stand at 95.51 baht ($2.81) and 67.85 baht ($2.00), respectively.
Top rubber producer Thailand's meteorological agency warned of heavy to very heavy rains that may cause flash floods and overflows from Sept. 1-4.
With the support of domestic policies to promote automobile consumption, the downstream tire industry has maintained a stable and positive trend, with rebounding tire production supporting demand for natural rubber, said Chinese commodities data provider Business Community.
The front-month September rubber contract on Singapore Exchange's SICOM platform STFc1 last traded at 180.1 U.S. cents per kg, down 1.2%.
($1 = 144.5200 yen)
($1 = 7.1074 yuan)
($1 = 33.9500 baht)
Reporting by Gabrielle Ng; Editing by Sumana Nandy
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