Japanese rubber futures fell on Thursday, as weak supply-demand fundamentals overshadowed support from firmer oil.
The Osaka Exchange (OSE) rubber contract for May delivery was down 1.6 yen, or 0.49%, at 323.8 yen($2.08) per kg, as of 0302 GMT.
The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery dipped 240 yuan, or 1.58%, to 14,990 yuan ($2,120.53) per metric ton.
The most active January butadiene rubber contract on the SHFE fell 230 yuan, or 2.16%, to 10,435 yuan per metric ton.
Rubber fundamentals are weak in both supply and demand, and prices are expected to be volatile, said Chinese broker Everbright Futures.
Global rubber consumption is expected to decrease by 1.8% in the first 10 months of 2025, leading to oversupply in the spot market, increased inventory pressure, and significant downward pressure on prices, said Chinese commodity information provider SunSirs.
The yen was little changed at 155.18 per U.S. dollar.
Japan’s Nikkei climbed by 1.2%.
Oil prices firmed on potential supply constraints following Ukrainian attacks on Russia’s oil infrastructure.
Natural rubber often takes direction from oil prices as it competes for a market share with synthetic rubber, which is made from crude oil.
Top rubber producer Thailand’s meteorological agency warned of thundershowers and accumulated rains from December 4-6.
Broadly, top rubber consumer China is likely to stick to its current annual economic growth target of around 5% next year, with the immediate focus on fiscal and monetary support amid weak consumer demand.
The front-month rubber contract on Singapore Exchange’s SICOM platform for December delivery last traded at 169.3 U.S. cents per kg, down 1.2%.
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