Weak start for rubber futures following December sell-offs

Tokyo – Natural rubber (NR) futures were generally weak in the first trading week of January, due in part to speculative sell-offs and long liquidations the month before.

The trading week ended 3 Jan closed lower across most major exchanges, reaching their lowest levels in four weeks, reported Japan Exchange Group (JPX).

This was due to sell-offs and long liquidation by funds throughout December, following a prior-month price-rally, driven by flooding in southern Thailand, said the 6 Jan report.

In Osaka, Japan, OSE's June-2025 contract prices closed 1% higher week-on-week at the end of the year and resumed trading on 3 Jan.

On China's SHFE and INE exchanges, rubber futures declined by around 3.0% week-on-week, while Singapore’s SICOM rubber dropped 4% amid “a lack of physical and consumer buying.”

Trading volumes decreased across most exchanges due to the year-end and New Year holiday season, according to the JPX report.

China's rubber stock “declined sharply” amid concerns about potential higher tariffs from the new US administration, the review also noted.