Japanese rubber futures snapped a three-day rally on Wednesday, as traders reacted to discouraging manufacturing data from China and the yen continued to strengthen.

Japanese rubber futures climbed on Monday, as lower domestic inventories raised concerns of supply tightness, while China’s efforts to boost its economy and property sector led to demand optimism for the world’s top consumer.

The prices of latex and rubber sheets have continued to fall in Bangladesh, depriving growers of a better return, although manufacturers and exporters are offering higher rates to suppliers.

Many domestic rubber firms are pursuing a green strategy in an effort to reduce waste and verify sustainable forest management certificates to better promote the Vietnamese rubber brand globally.

Japanese rubber futures climbed to a one-week high on Tuesday, supported by hopes of stimulus and stronger demand in China, though a stronger yen capped gains.

Continuing rains in Kerala have hit natural rubber production, which fell 5-10 per cent during the September-November period compared to a year ago.

The China Synthetic Rubber Market reached a valuation of USD 30.16 billion in 2022 and is poised for robust growth in the forecast period, with a projected Compound Annual Growth Rate (CAGR) of 3.31% through 2028 and is expected to reach at USD 36.43 million in 2028.

Japanese rubber futures rose on Friday after two sessions of losses, buoyed by reports of rising inflation and possible supply shortages, though the strengthening yen limited gains.