Rubber futures see sharp drops as fears of global recession grow

Tokyo – Natural rubber futures fell sharply in the first trading week of April as the US imposed new tariffs on imported goods.

All major Far East markets closed the trading week ended 4 April significantly lower, driven largely by "growing fears of a global recession" following President Trump’s tariff hikes earlier in the week.

In Osaka, Japan, the September-2025 contract closed down 8.2% from the previous week, according to Japan Exchange Group (JPX) on 7 April.

JPX attributed the decline to "weakness in overseas markets and persistent selling pressure amid escalating global trade tensions."

In Shanghai, China, SHFE and INE contracts fell 2.4% and 2.6%, respectively, while in Singapore, SICOM rubber contracts for July delivery saw a 6.5% week-on-week drop.

According to JPX, the broader weakness was fueled by a sharp decline in global commodities, reflecting deepening concerns over a potential global recession.

Equity markets also fell significantly as trade tensions intensified worldwide.