Japanese futures ease; prospects of demand from China limit declines
Updates closing prices and adds analyst quotes
SINGAPORE, Sept 19 (Reuters) -
Japanese rubber futures ticked lower onThursday, giving up earlier gains driven by prospects of strong demandfrom top consumer China, which also limited declines.
The Osaka Exchange (OSE) rubber contract for February delivery JRUc6, 0#2JRU: closed down 1.5 yen or 0.4%at 373.4 yen ($2.62) per kg, after climbing to $381.6 earlier in the session, its highest since Aug. 30.
The January rubber contract on the Shanghai Futures Exchange (SHFE) SNRv1 ended up 330 yuan, or 1.87%, to 18,020 yuan($2,551.00) per metric ton.
The most active November butadiene rubber contract on the SHFE SHBRv1 rose 280 yuan, or 1.77%, to 16,125 yuan($2,282.73) per ton.
The U.S. dollar rose broadly, reversing a brief tumble in the immediate aftermath of the Federal Reserve's outsized interest rate cut that had been largely priced in by markets. USD/
A stronger greenback makes yen-denominated assets more affordable to overseas buyers.
Downstream production has stabilised, and the automobile industry has gradually emerged from the off-season, Chinese financial information site Hexun Futures said in a note.
The natural rubber market is expected to continue to fluctuate and rise in the short-term due to growing concerns over worsening supply situation in major exporting countries in Southeast Asia, said Jom Jacob, chief analyst of India-based analysis firm What Next Rubber.
Rising prices of butadiene rubber prices further support a stronger natural rubber market, he added.
China's commerce minister said on Wednesday that Beijing will continue to negotiate "until the last minute" on the European Union's electric vehicle probe.
Oil prices rose after a large interest rate cut from the Fed, but concerns over global demand lingered and capped gains. O/R
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
The front-month October rubber contract on Singapore Exchange's SICOM platform STFc1 closed up at 196.1 U.S. cents per kg, up 1.7%.
($1 = 142.2900 yen)
($1 = 7.0639 yuan )
Reporting by Haridas and Gabrielle Ng; Editing by Mrigank Dhaniwala and Varun H K
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