Rubber futures ease on “persistent overcapacity”, weak tire demand

Tokyo – Natural rubber (NR) futures came under pressure from “weak global tire demand, persistent overcapacity and high inventory levels in China,” the Japan Exchange Group (JPX) reported.

Prices closed lower across all major exchanges for the week ended 22 Aug, JPX said 25 Aug.

In Osaka, the OSE’s January-2026 contract fell 0.8% week-on-week, while Shanghai’s SHFE and INE declined 0.9% and 0.7%, respectively.

In Singapore, SICOM’s active November contract slipped 0.6% compared to the week before in subdued trading.

Trading volume was down across the board as “uncertainty and sideways markets kept participants sidelined,” JPX noted.

“Limited buying interest was seen, while long liquidation in Chinese exchanges reduced their open interest,” it added.

Citing 'a rubber trader', JPX said the market is expected to stay in consolidation mode, though overall sentiment remains relatively stable.