SINGAPORE: Japanese rubber futures fell on Monday to their lowest since September 2021, as fears of a larger global banking crisis lingered, while falling oil prices and a firmer yen also weighed on the market. The Osaka Exchange’s rubber contract for August delivery finished 3.5 yen, or 1.7%, lower at 205.0 yen ($1.56) per kg.
The rubber contract on the Shanghai futures exchange for May delivery ended flat at 15,795 yuan ($2,291.46) per tonne.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell by 1.1% from a week earlier, the exchange said on Friday. Japan’s benchmark Nikkei average closed 1.42% lower. Oil prices fell over $2, hitting fresh 15-month lows, on concerns that risks in the global banking sector may cause a recession that would lead fuel demand to decline and ahead of a potential interest rate hike by the US Federal Reserve this week.
Lower oil prices incentivise manufacturers to shift to synthetic rubber derived from oil, weighing on the natural rubber market. The Japanese yen rose 0.66% against the dollar to 130.95, as of 0709 GMT.
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