SINGAPORE: Japanese rubber futures rose sharply on Monday, buoyed by growing supply concerns from Thailand and a global sigh of relief following the US government’s decision to exempt key electronics from fresh tariffs.
The Osaka Exchange (OSE) rubber contract for September delivery jumped 5.9 yen, or 1.98%, to 303.5 yen (US$2.13) per kg by 2:22 a.m. GMT.
Similarly, gains were seen in China’s futures markets:
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The Shanghai Futures Exchange (SHFE) rubber contract for May delivery rose 310 yuan, or 2.09%, to 15,135 yuan (US$2,072.35) per metric ton.
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The most active butadiene rubber contract for May delivery increased 130 yuan, or 1.12%, to 11,765 yuan (US$1,610.92) per ton.
The upward pressure follows weather warnings from Thailand’s Meteorological Department, which forecast thunderstorms and heavy rain in the south from April 14 to 19. The adverse weather is expected to impact rubber output, tightening supply from the world’s largest producer.
Boosting global sentiment, US President Donald Trump’s administration announced tariff exemptions on smartphones, computers, and other electronics—key products in global trade. This move helped Japan’s Nikkei Index climb 2% and supported broader optimism in Asian markets.
The Japanese yen weakened 0.2% to 143.79 per US dollar, improving the attractiveness of yen-denominated commodities for foreign investors.
Despite the temporary reprieve in tariffs, analysts remain cautious. China’s economy appears to be slowing, with growth projections for 2025 expected to fall below last year’s pace, according to a Reuters poll. Uncertainty over long-term US-China trade relations continues to weigh on market sentiment.
On the Singapore Exchange (SICOM), the May rubber contract last traded at 171 US cents per kg, up 0.9%.
