TOKYO: Japanese rubber futures fell more than 3% on Friday, following a plunge in the Shanghai market amid fears over slowing demand in top buyer China, but the benchmark managed to book a fourth straight weekly gain.
Osaka Exchange's rubber contract for March delivery finished 7.6 yen, or 3.2%, lower at 230.9 yen ($2.0) per kg. But it marked 1.9% gain for the week.
The rubber contract on the Shanghai futures exchange for January delivery plunged 875 yuan to finish at 14,750 yuan ($2,309) per tonne.
China is suffering power shortages and weakening economic growth. Despite recent swings in coal prices, higher energy, labour and other costs are now expected to persist and be passed on to end-consumers, economists and analysts said.
Rubber prices failed to get a boost from news that heavily indebted Chinese property firm China Evergrande Group had made a surprise interest payment, averting a default for now.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 7.5% from last Friday, the exchange said on Friday.
The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 175.0 US cents per kg, down 1.9%.
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