Japan rubber futures drop on strong yen and US tariff concerns
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Rubber futures close the week in the red
The Osaka Exchange (OSE) rubber contract (trb1!) for july delivery declined 0.77% to 372.1 yen per kg, marking a 1.19% weekly loss the Shanghai Futures Exchange (SHFE) rubber contract (rss31!) slipped 0.22% to 17,845 yuan per metric ton, reflecting a cautious market.
Yen volatility adds to selling pressure
The japanese yen (USD/JPY) briefly strengthened to 149.285 per dollar, making yen-denominated assets less attractive to foreign buyers a stronger yen typically dampens demand for japanese exports, weighing on rubber prices.
US tariff threats and trade uncertainty
Donald Trump’s latest tariff proposal includes a potential 25% tax on imported autos, adding pressure to Japan’s export-driven economy while Trump later suggested a China-US trade deal is possible, the uncertainty kept rubber traders cautious.
Spot prices rise
Despite weak demand spot rubber prices remained firm ahead of the wintering season in Asia, which runs from february to may, leading to lower production levels in top producer Thailand, the meteorological agency warned farmers of potential crop damage from february 23-25, raising concerns about supply disruptions.
Trading Outlook
Rubber futures remain under downward pressure from a stronger yen and trade concerns, with resistance at 375-380 yen per kg key support sits near 370 yen, with any additional weakness likely tied to currency fluctuations and tariff developments.
The Osaka Exchange (OSE) rubber contract (trb1!) for july delivery declined 0.77% to 372.1 yen per kg, marking a 1.19% weekly loss the Shanghai Futures Exchange (SHFE) rubber contract (rss31!) slipped 0.22% to 17,845 yuan per metric ton, reflecting a cautious market.
Yen volatility adds to selling pressure
The japanese yen (USD/JPY) briefly strengthened to 149.285 per dollar, making yen-denominated assets less attractive to foreign buyers a stronger yen typically dampens demand for japanese exports, weighing on rubber prices.
US tariff threats and trade uncertainty
Donald Trump’s latest tariff proposal includes a potential 25% tax on imported autos, adding pressure to Japan’s export-driven economy while Trump later suggested a China-US trade deal is possible, the uncertainty kept rubber traders cautious.
Spot prices rise
Despite weak demand spot rubber prices remained firm ahead of the wintering season in Asia, which runs from february to may, leading to lower production levels in top producer Thailand, the meteorological agency warned farmers of potential crop damage from february 23-25, raising concerns about supply disruptions.
Trading Outlook
Rubber futures remain under downward pressure from a stronger yen and trade concerns, with resistance at 375-380 yen per kg key support sits near 370 yen, with any additional weakness likely tied to currency fluctuations and tariff developments.