TOKYO—World natural rubber futures closed the trading week ended Nov. 27 lower across all rubber exchanges, due mainly to COVID-19 and economic developments in China.
"After the news of new COVID cases in China, the markets experienced liquidation of long positions and further speculative selloffs from traders," Japanese Stock Exchange JPX said in its weekly rubber report Nov. 28.
In Osaka, Japan OSE rubber futures fell 2.2 percent, while SHFE and INE futures in China dropped 0.4 percent and 2.1 percent, respectively.
In Singapore, SICOM futures declined 2 percent "amid new speculative selloffs," according to the JPX report.
SHFE's warehouse rubber stocks fell 54 percent to 148,585 metric tons on yearly expiration, while INE's stocks also decreased by 3,356 metric tons during the week.
JPX linked the decline in rubber prices to several China-related developments, including the introduction of new lockdowns as the country's COVID-19 cases increased to another record high of 32,695 on Nov. 26.
In addition, the Yuan further strengthened against the dollar, continuing downward pressure on Chinese stocks.
"The struggling Chinese economy has put downward pressure on rubber prices," the report added.
In Japan, meanwhile, consumer price index rose 3.6 percent year-on-year in November, hitting a 40-year high, while the manufacturing PMI recorded "a weaker number" at 49.4.
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