Rubber futures retreat as supply outlook, China concerns weigh on market

Tokyo – Natural rubber futures ended the final trading week of July mostly lower, with Japan's Osaka Exchange (OSE) the only major market to post a weekly gain, according to Japan Exchange Group (JPX).

Over the week ended 31 July, OSE December 2026 rubber contract settled up 0.5% week-on-week in "thin trading", while SHFE and INE rubber futures in Shanghai fell 2.3% and 2.5%, respectively, amid fresh selling pressure.

In Singapore, the SICOM October 2026 rubber contract ended the week down 1.5% in "quiet trading", with prices remaining within a "narrow range", JPX said in its 3 Aug weekly NR futures report.

"Increased production across Northern Hemisphere producing Asian countries, coupled with signs of a slowing Chinese economy, continued to weigh on rubber prices," JPX said.

The report added that expectations of higher interest rates, elevated crude oil prices and "persistent inflationary pressures" could continue to weigh on commodity markets.