TOKYO: Japanese rubber futures hit a near 2-week low on Monday, as weaker Shanghai futures prompted a sell-off while a slide in oil prices reduced appetite for the commodity.
Osaka Exchange's (OSE) rubber contract for February delivery finished 0.4 yen lower at 179.6 yen ($1.69) per kg. Earlier in the session, it dropped as much as 176.8 yen, the lowest since Aug. 25.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 75 yuan to finish at 12,465 yuan ($1,825) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for September delivery last traded at 134.4 US cents per kg, down 1.2%.
"Weaker imports from China in August and slumping China equities led to a drop in Shanghai rubber futures, which added to pressure on the OSE," Satoru Yoshida, a commodity analyst with Rakuten Securities said.
"With receded optimism of global demand recovery amid the COVID-19 pandemic, rubber prices may stay under selling pressure for a while," he said.