Japanese rubber futures climbed to a three-week high amid optimism over U.S.–China trade negotiations and supply concerns from Thailand.
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Tokyo (CSVNO) – Japan’s rubber futures rose to their highest level in three weeks on Wednesday, driven by optimism surrounding U.S.–China trade talks and concerns over tight supply from Thailand, though weak demand capped further gains.
The October contract on the Osaka Exchange (OSE) gained 2.1 yen, or 0.71%, to close at 299 yen (USD 2.09) per kilogram, after touching an intraday high of 302.4 yen, the strongest level since April 15.
Meanwhile, the September contract on the Shanghai Futures Exchange (SHFE) remained steady at 14,810 yuan (USD 2,049.51) per ton. The June butadiene rubber contract, one of the most active on the SHFE, rose 150 yuan, or 1.34%, to 11,375 yuan (USD 1,574.15) per ton.
Optimism Around Trade Negotiations
U.S. Treasury Secretary Scott Bessent and Chief Trade Negotiator Jamieson Greer are scheduled to meet with China’s economic chief He Lifeng later this week, in what could mark an initial step toward easing the prolonged trade dispute that has disrupted the global economy.
The talks have sparked cautious optimism across commodities markets, particularly those tied to industrial demand and global trade flows.
Auto Sector Impact and Supply Concerns
German automaker BMW said it expects some U.S. import tariffs on cars to be reduced starting in July, although it warned that the duties would still have a “significant impact” on its second-quarter operations.
Vehicle sales and production trends directly affect rubber consumption, as tires account for the majority of natural rubber demand.
In Thailand, Agriculture Minister Narumon Pinyosinwat urged farmers to temporarily suspend rubber tapping for one month to support local prices, according to the Japan Exchange Group.
Such a move could further tighten near-term supply from Thailand, the world’s largest natural rubber producer.