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RUBBER-Japan futures slip as automakers flag semiconductor crunch, EV slowdown

Reuters
Oct 30
RUBBER-Japan futures slip as automakers flag semiconductor crunch, EV slowdown

Oct 30 (Reuters) -

  • Japanese rubber futures dipped on Thursday as concerns over a deepening semiconductor shortage and slowing electric vehicle demand weighed on the auto industry.

  • The Osaka Exchange (OSE) rubber contract for April delivery JRUc6, 0#2JRU: was down 3.3 yen, or 1.05%, at 311.6 yen($2.07) per kg, as of 0303 GMT.

  • The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery SNRv1 rose 30 yuan, or 0.19%, to 15,475 yuan ($2,172.54) per metric ton.

  • The most active December butadiene rubber contract on the SHFE SHBRv1 gained 145 yuan, or 1.36%, to 10,790 yuan per metric ton.

  • Leading automakers Nissan Motor 7201.T and Mercedes-Benz MBGn.DE are the latest global car makers to raise concerns over a worsening semiconductor shortage, as a dispute between the Netherlands and China over Dutch chipmaker Nexperia continues to disrupt vehicle production.

  • Elsewhere, major automaker General Motors GM.N said on Wednesday that it would cut U.S. electric vehicle and battery production in response to a significant slowdown in demand for its battery cars.

  • Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.

  • Some executives and analysts have said that EV sales, which exceeded 10% of overall U.S. car sales over the summer, could fall by half in the coming months.

  • The yen JPY=EBS hovered near an eight-month low against a resurgent dollar at 152.59. USD/

  • A weaker currency makes yen-denominated assets more affordable to overseas buyers. FRX/

  • Oil prices were steady as investors awaited U.S.-China trade talks later in the day. 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 rubber contract on Singapore Exchange's SICOM platform for November delivery STFc1 last traded at 175.7 U.S. cents per kg, down 0.3%.

($1 = 150.7800 yen)

($1 = 7.1230 Chinese yuan)

(Reporting by Lucas Liew; Editing by Sherry Jacob-Phillips)

((Lucas.Liew@thomsonreuters.com;))

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