SHANGHAI: Japanese rubber futures eased on Friday, weighed down by a pullback in Tokyo stocks and oil prices, but logged a second straight weekly gain.
The Osaka Exchange (OSE) rubber contract for March delivery was down 5.8 yen, or 1.27percent, at 451 yen (USD2.86) per kg. The contract gained 1.04percent this week. Japan’s Nikkei retreated from a 6-week high as investors locked in gains and turned cautious over the outlook for interest rates, inflation, and geopolitical risks. Weaker risk sentiment tends to weigh on rubber futures.
Oil prices eased after a sharp climb a day earlier as the market refocused on signs of recovering Middle Eastern supplies, though the possibility of renewed US-Iran tensions provided a floor.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Global natural rubber production fell 4.2percent from the previous year to 8.68 million tons in the first eight months of 2026, while consumption fell 2.7percent to 9.89 million tons, leaving demand ahead of supply, the Association of Natural Rubber Producing Countries said in its August report.
The outlook for global rubber demand still depends on changes in car sales, tyre production, transportation conditions and weather-related supply interruptions, the report said.
Stable demand for electric vehicles supports the moderate growth of demand, with China and India leading this growth, the report added.
The front-month rubber contract on Singapore Exchange’s SICOM platform for December delivery last traded at 255.7 US cents per kg, up 0.4percent as of 0715 GMT.
It hit its highest since May 22, 2013.
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