Japanese rubber futures gained for a fifth session on Wednesday to touch a six-week high, buoyed by concerns over lower output from top producers and as market sentiment improved after solid economic data from top buyer China.
Osaka Exchange’s (OSE) rubber contract for March delivery finished up 1.9 yen, or 0.9%, at 202.1 yen ($1.92) per kg. It earlier climbed to as high as 203.5 yen, the highest since Aug. 31.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 195 yuan to finish at 13,360 yuan ($1,985) per tonne. It touched the highest since Dec. 9, 2019 of 13,440 yuan earlier in the session.
The International Tripartite Rubber Council (ITRC), which groups Thailand, Indonesia and Malaysia, warned last month it expected a decrease in the production of natural rubber for the rest of 2020, and a further decline into early 2021.
The front-month rubber contract on Singapore’s SICOM exchange for November delivery last traded at 149.0 US cents per kg, up 1.1%.
China’s imports grew at their fastest pace this year in September, while exports extended strong gains as more trading partners lifted coronavirus restrictions in a further boost to the world’s second-biggest economy.
