SINGAPORE: Japanese rubber futures tracked oil prices lower on Monday, although expectations of more policy support in China and concerns about supply from top producer Thailand due to adverse weather limited the losses.
The Osaka Exchange (OSE) rubber contract for January delivery was down 1.2 yen, or 0.38%, at 318.3 yen ($2.16) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery rose 40 yuan, or 0.25%, to 15,820 yuan ($2,203.31) per metric ton.
The most-active September butadiene rubber contract on the SHFE gained 95 yuan, or 0.81%, to 11,805 yuan per ton.
Oil prices dropped in early trade, as the United States did not exert more pressure on Russia to end the Ukraine war following a meeting between the two countries.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Market sentiment had improved after the United States announced a 90-day extension to tariff truce with China. Expectations of additional stimulus from China following weaker economic data, and adverse weather in Thailand added to the bullish tone, Japan Exchange Group said in a report on Monday.
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