TOKYO: Japanese rubber futures dropped to their lowest in more than five weeks on Thursday due to worries about slow recovery in global demand on extended lockdowns and delayed vaccine rollouts in Europe.

The Osaka Exchange rubber contract for August delivery was down 5.6 yen, or 2.2%, at 251.7 yen ($2.3) per kg by 0138 GMT. It touched 245.1 yen during the session - the lowest since Feb. 15.

The rubber contract on the Shanghai futures exchange for May delivery was down 20 yuan, or 0.1%, at 14,215 yuan ($2,176) per tonne.

The front-month rubber contract on Singapore’s SICOM exchange for April delivery last traded at 173.3 US cents per kg, down 0.8%.

Even Germany’s reversal of a call for a strict lockdown over the Easter period did little to build confidence in the region’s economic outlook, instead compounding discontent with Chancellor Angela Merkel’s handling of the pandemic.

US Treasury Secretary Janet Yellen earlier this week put investors on alert after espousing tax hikes to pay for President Joe Biden’s plans for upgrading infrastructure and other investments.