TOKYO—Natural rubber futures pricing has remained weak over the recent weeks amid subdued demand from major consumer China.
NR futures closed the trading week ended April 19 with declines across all major Far East markets, Japan Exchange Group (JPX) reported in its April 22 report.
In Osaka, Japan, OSE rubber futures fell 1.5 percent in light trading activity.
In China, SHFE and INE, rubber futures dropped 0.9 percent and 1.7 percent, respectively, driven by "long liquidation and profit-taking," JPX said.
Singapore's SICOM rubber prices also witnessed a marginal decline due to long liquidation.
According to JPX, open interest decreased across all exchanges "as speculative funds continued to unwind their long positions."
Market sentiment was clouded by uncertainties surrounding supply shortages and weaker demand from China.
However, JPX noted "positive reports" during the week, signaling a "gradual recovery" in the rubber supply situation in Yunnan, China. The report also stated there had been improvement in yields that were previously affected by El Nino.
In related stories, Yokohama Rubber Industries broke ground on a new passenger car tire plant in Saltillo Mexico. Production, expected to be 5 million units per year, is slated to commence in early 2025.
China's Sailun Tire, meanwhile, has delayed its production schedule for an expansion project at its facility in Vietnam until March 2025.
In financial news, China reported a GDP growth rate of 5.3 percent year-on-year for the first quarter, surpassing expectations.
