Japanese rubber futures drift lower over demand concerns

The Osaka Exchange (OSE) rubber contract for July delivery was down 4.2 yen, or 1.22 percent, at 339.1 yen (USD2.18) per kg.

The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery rose 40 yuan, or 0.25 percent, to 16,180 yuan (USD2,332.02) per metric ton.

The most-active March butadiene rubber contract on the SHFE gained 125 yuan, or 0.96 percent, to 13,185 yuan per ton. OSE ribbed smoked sheet stocks in December 2025 declined to about 2,000 tons, their lowest level in six years, according to data from the Japanese Exchange Group, raising concerns about demand in one of the world’s biggest rubber importers.

Rubber on the Singapore and Shanghai exchanges rebounded along with other commodities, as sentiment recovered from the broad-based commodities slump on Monday, a trader told Reuters. Oil prices held steady on Tuesday as market participants weighed the possibility of a de-escalation in US-Iran tensions, with a firmer dollar limiting the upside.

Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. Supply constraints in rubber production as tapping ceases in northeastern Thailand and Vietnam, are expected to raise raw material prices, Chinese brokerage Southwest Futures said in a report.

Rubber crops usually undergo a season of low production from February to May, before entering a peak harvesting period that lasts until September.

The front-month rubber contract on Singapore Exchange’s SICOM platform for March delivery last traded at 187.8 US cents per kg, as of 0703 GMT, up 1.5percent.