Japanese rubber futures dip as seasonal harvests counter tyre demand
SINGAPORE: Japanese rubber futures lost ground on Wednesday, pressured by a firmer supply outlook as production areas entered the harvesting season, outweighing brightening demand for the tyre-making material.
The Osaka Exchange (OSE) rubber contract for October delivery ended daytime trade 3.1 yen lower, or 0.96%, to 320.2 yen ($2.23) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery eased 135 yuan, or 0.9%, to 14,820 yuan ($2,056.76) per metric ton.
The most active June butadiene rubber contract on the SHFE fell 235 yuan, or 1.94%, to 11,900 yuan ($1,651.52) per metric ton. According to the Chinese financial information site Tonghuashun, the start of overseas rubber tapping is expected to boost the supply of raw material significantly.
Output in May is rising steadily, with supply volumes surpassing that of the same month last year, said consultancy Jinlianchuang. Rubber crops usually undergo a season of low production from February to May, before a peak harvesting period that lasts through September. However, rubber tapping overseas has been punctuated by inclement weather, impacting the harvest, Tonghuashun added.
Top producer Thailand’s meteorological agency warned of heavy rains that could cause flash floods, as the southwest monsoon strengthens from May 23-27.
The dollar declined 0.55% to 143.715 yen. A stronger currency makes yen-denominated assets less affordable to overseas buyers. Meanwhile, China’s rubber tyre exports grew 6.2% year-on-year to 3.03 million tons in the first four months of 2025, said broker Everbright Futures, citing data from China’s General Administration of Customs. Qingdao inventories of natural rubber fell 1.12% week-on-week to 380,100 tons, said Chinese rubber sales portal Natural Rubber Network.
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