Japanese rubber futures drift lower

SHANGHAI: Japanese rubber futures reversed earlier gains, following a selloff led by Asian stocks in the wake of the US-Israeli war against Iran and further weighed down by mounting inventories.

The Osaka Exchange rubber contract for August delivery closed 3.6 yen, or 0.96percent lower at 372.6 yen (USD2.37) per kg.

The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery fell 265 yuan, or 1.55percent, to 16,835 yuan (USD2,442.37) per metric ton.

The most-active April butadiene rubber contract on the SHFE gained 475 yuan, or 3.64percent, to 13,530 yuan per ton. It rose to 13,660 yuan earlier in the session, its highest since January 30.

Japan’s Nikkei share average marked its biggest fall since November 2025, as a widening US and Israeli war against Iran prompted foreigners to sell shares.

Rising Shanghai rubber inventories pressured prices as stocks in warehouses monitored by the SHFE rose 0.3percent from last release on February 13.

Lagging demand-side support also weighed prices down, as production rates at Chinese tyre manufacturers are yet to reach pre-Lunar New Year levels, Chinese broker Guangzhou Futures said in a note.

Oil prices rose for a third day as threats to shipping through the Strait of Hormuz heightened fears of supply disruptions from the key Middle East producing region.

Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.

Surging oil and energy prices could lead to more expensive freight rates, which could lift the price of rubber futures, but could also result in fewer shipments.

The front-month rubber contract on Singapore Exchange’s SICOM platform for April delivery last traded at 198.6 US cents per kg, down 2.3percent as of 0700 GMT.