TOKYO—Natural rubber futures ended the week sharply lower across all major exchanges, with Chinese markets posting double-digit week-on-week losses.
All major Far East markets reported declines during the week ended April 11, primarily driven by "stop-loss selling and long liquidation," the Japan Exchange Group (JPX) reported in its weekly report April 14.
"Trading volumes surged across the exchanges, while open interest declined significantly as traders were forced to close long positions to meet margin requirements," JPX said.
In Osaka, Japan, September delivery rubber contracts dropped 7.2 percent week-on-week, while in Shanghai, China, SHFE and INE rubber posted steep declines of 10.6 percent and 10.9 percent, respectively.
In Singapore, SICOM rubber followed the trend, closing down 6.7 percent compared to the week before, weighed by "strong selling pressure stemming from the declines in the Chinese markets."
JPX linked the declines partly to President Trump's sweeping tariff hikes on major trading partners, which were later followed by a 90-day pause for all except China.
The trade policy, it said, "sparked widespread chaos, confusion, and turbulent reactions across global markets."
The market was further pressured by China's escalating retaliatory measures, which included raising tariffs on U.S. goods to as high as 125 percent.
