Tokyo rubber futures hit 9-month low on demand worries

SINGAPORE: Japanese rubber futures hit a nine-month low on Tuesday, tracking losses in the Shanghai market as weaker oil prices and continued worries over an economic slowdown in top consumer China weighed on sentiment.

The Osaka Exchange rubber contract for January delivery was down 3.6 yen, or 1.6 %, at 224.0 yen ($1.68) per kg as of 0200 GMT. It hit its lowest since mid-November, extending lossses for a fourth consecutive session.

The rubber contract on the Shanghai futures exchange for January delivery was down 235 yuan, or 1.8%, at 12,640 yuan ($1,862) per tonne.

China’s central bank cut key lending rates in a surprise move on Monday to revive demand as data showed the economy unexpectedly slowing in July.

There were concerns in the past months over slowing rubber demand in China as extended lockdowns result in reduced industrial activity and consumption.