Japanese rubber futures rose on Friday but ended the week slightly lower, as the ongoing Nexperia trade conflict in China weighed on investor sentiments.
The Osaka Exchange (OSE) rubber contract for April delivery TRB1!,
TRB1! was up 2.9 yen, or 0.94%, at 313 yen($2.08) per kg.
The contract has ended the week 0.29% lower.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery RSS31! rose 45 yuan, or 0.3%, to 14,995 yuan ($2,105.15) per metric ton.
The most active December butadiene rubber contract on the SHFE (SHBRv1) eased 5 yuan, or 0.05%, to 10,190 yuan per metric ton.
The Netherlands’ economy minister, Vincent Karremans, voiced positive sentiments that chips made by Nexperia would reach the world in the coming days, based on the trade deal struck between the U.S. and China last week.
China had restricted exports of Nexperia chips, used in car production, after the Dutch government seized control of the company. The trade conflict disrupted auto supply chains, hit production, and caused some buyers to furlough staff.
Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
The dollar strengthened against the yen USDJPY to 153.27, after data showed Japanese household spending rose less than expected in September.
A weaker currency makes yen-denominated assets more affordable to overseas buyers.
Oil prices headed for a weekly loss as investors considered a possible supply glut and weak demand.
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 rubber contract on Singapore Exchange’s SICOM platform for December delivery TF1! last traded at 168.9 U.S. cents per kg, down 0.4%.

AloJapan.com