SHANGHAI: Japanese rubber futures fell on Tuesday as a dip in oil prices outweighed a widening spread between Thai latex and cup lump prices tied to persistent rainfall in southern Thailand.
The Osaka Exchange (OSE) rubber contract for April delivery was down 1.9 yen, or 0.42 percent, at 446.5 yen (USD2.84) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery fell 320 yuan, or 1.63 percent, to 19,365 yuan (USD2,903.30) per metric ton.
The most active December butadiene rubber contract on the SHFE rose 300 yuan, or 1.83 percent, to 16,660 yuan per metric ton, as low spot inventories and lingering cost pressures from recent crude strength kept prices supported even as oil eased on Tuesday, analysts at Gelin Dahua Futures said in a note.
Oil prices fell about 1 percent as prospects for a resolution of the US-Israeli war on Iran kept supply fears at bay with talks in Tehran, despite renewed Houthi attacks on Saudi Arabia.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil Weather has improved in Chinese producing areas, boosting supply, while persistent rain in southern Thailand may widen the price gap between Thai latex and cup lump rubber further, Huatai Futures said in a note.
Thailand’s natural rubber exports totalled 1.83 million metric tons in the first three quarters of 2026, down 8 percent year-on-year, with exports to China falling 24 percent to 576,000 metric tons over the same period, data from rubber information provider Qinrex showed. China’s domestic car sales are set to fall to 18.5 million vehicles in 2026, versus 23.7 million in 2025, before rebounding by a median 2 percent in 2027, said Cui Dongshu, secretary-general of the China Passenger Car Association on Monday.
Car sales affect demand for tyres, a major use of rubber. The front-month rubber contract on Singapore Exchange’s SICOM platform for January delivery last traded at 248.5 US cents per kg, down 0.8 percent as of 0705 GMT.