Rubber futures weaken on ‘steady supply’, slowing China growth

Tokyo – Natural rubber futures fell across major Far East exchanges amid rising supply and persistent weakness in China’s economy, Japan Exchange Group (JPX) reported on 20 Oct.

All major markets closed lower for the trading week ended 17 Oct, with sentiment dampened by “full-scale production” in ASEAN countries, concerns over China’s economic slowdown, and subdued global tire demand.

Improved weather conditions in producing regions will support “steady output” into the fourth quarter, prompting speculators to rebuild short positions, said JPX.

“The forward curve has shifted into backwardation, signalling expectations of weaker prices in the medium term,” the exchange added.

According to JPX, China’s economy remains under strain amid rising trade tensions with the US, with third-quarter GDP growth projected at between 4.7% and 4.8%, below the 5% target.

In Osaka, Japan, OSE’s RSS March-2026 contract closed down 2.5% week-on-week in light trading.

In Shanghai, China, SHFE’s January-2026 rubber contract fell 3.5% week-on-week, while INE’s January-2026 contract closed 1.5% lower.

In Singapore, SICOM’s TSR active January-2026 contract declined 1.35% in active trading.