SINGAPORE: Japanese rubber futures fell for a fourth consecutive day on Wednesday, tracking declines in the Nikkei and pressured by falling automobile prices in China, which have squeezed producer margins and dampened investor sentiment.
The Osaka Exchange (OSE) rubber contract for March delivery was down 5.7 yen, or 1.86 percent, at 300 yen (USD2.04) per kg. According to data from Rhodium Group, Chinese electric car makers invested more abroad than domestically for the first time in 2024, highlighting the impact of a fierce price war that has squeezed producer margins.
Fierce competition in China, the world’s largest auto market, is driving down automobile prices, which in turn are putting pressure on rubber tyre prices. Japan’s Nikkei was down 1percent. The dollar was flat against the yen after a 1.2percent slide in the last three sessions, as the US government shutdown started.
A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers. Oil prices steadied following two consecutive days of losses as investors weighed potential OPEC+ output hikes against the prospect of shrinking inventories in the United States.
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