TOKYO: Japanese rubber futures plunged on Wednesday, hitting their lowest in nearly 11 months, as a sharp drop in China’s imports of the material in August fuelled concerns over slowing demand in the world’s biggest rubber buyer.
Osaka Exchange’s rubber contract for February delivery finished 8.2 yen, or 4%, lower at 199.3 yen ($1.8) per kg. It hit the lowest since Oct. 16 last year of 198.6 yen earlier in the session.
The rubber contract on the Shanghai futures exchange for January delivery also tumbled 445 yuan to finish at 13,315 yuan ($2,060) per tonne.
“Growing concerns over weakening demand in China and elsewhere weighed on market sentiment,” a Tokyo-based dealer said.
“The sharp fall in Shanghai futures also promoted fresh technical selling in Japan,” he added.
China’s rubber imports, including natural and synthetic, dropped 24% in August from a year earlier.
Asian shares snapped eight successive sessions of gains on Wednesday, as fresh worries about slowing global growth prompted investors to reduce their exposure to riskier assets in a boost to safe-havens such as the US dollar.
The front-month rubber contract on Singapore’s SICOM exchange for October delivery last traded at 158.2 US cents per kg, down 2.8 percent.
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