SINGAPORE: Japanese rubber futures fell on Friday, tracking losses in the Shanghai market and weighed down by weakness in domestic equities, as fresh Covid-19 curbs in various cities in top consumer China dented demand sentiment.
The Osaka Exchange rubber contract for April delivery was down 3.0 yen, or 1.4%, at 213.0 yen ($1.45) per kg, as of 0200 GMT. The benchmark contract has dropped about 3.7% for the week. The rubber contract on the Shanghai futures exchange for January delivery was down 110 yuan, or 0.9%, at 12,060 yuan ($1,671) per tonne.
Japan’s benchmark Nikkei share average fell as much as 1.33% on Thursday morning trade. Chinese cities from Wuhan in central China to Xining in the northwest are doubling down on Covid-19 curbs, sealing up buildings, locking down districts and throwing millions into distress in a scramble to halt widening outbreaks.
Past months have seen growing concerns over slowing rubber demand in China as the country struggles with a property crisis, heat waves disrupting production, and extended lockdowns hitting industrial activity and consumption.
Rubber output in top exporter Thailand might be affected by forecasts for continued heavy rain and flood warnings in the traditional southern rubber-growing provinces.
Source: Brecorder
