Japanese rubber futures lower on soft demand

SINGAPORE: Japanese rubber futures fell on Thursday, as weak supply-demand fundamentals overshadowed support from firmer oil. The Osaka Exchange (OSE) rubber contract for May delivery was down 1.4 yen, or 0.43percent, at 324 yen(USD2.09) per kg.

The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery dipped 190 yuan, or 1.25percent, to 15,040 yuan (USD2,128.05) per metric ton.

The most active January butadiene rubber contract on the SHFE fell 210 yuan, or 1.97percent, to 10,455 yuan per metric ton. Rubber fundamentals are weak in both supply and demand, and prices are expected to be volatile, said Chinese broker Everbright Futures.

Global rubber consumption is expected to decrease by 1.8 percent in the first 10 months of 2025, leading to oversupply in the spot market, increased inventory pressure, and significant downward pressure on prices, said Chinese commodity information provider SunSirs. The yen dipped to 155.47 per dollar, but has inched away from the 10-month low it hit last month.

A stronger currency makes yen-denominated assets less affordable to overseas buyers. Japan’s Nikkei climbed by 2.2 percent.

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