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TOKYO: Japan rubber futures rose on Thursday as fears over tighter supply prompted fresh buys after an industry group consisting of the world's top rubber producers predicted lower output for the rest of this year and early next year.

Osaka Exchange's (OSE) rubber contract for February delivery finished 1.7 yen, or 0.9%, higher at 182.7 yen ($1.73) per kg. The most-active rubber contract on the Shanghai futures exchange for January delivery rose 25 yuan to finish at 12,390 yuan ($1,815) per tonne.

The International Tripartite Rubber Council (ITRC), which groups Thailand, Indonesia and Malaysia, said on Wednesday it expected production decrease in natural rubber for rest of 2020, further decline into early 2021.

The front-month rubber contract on Singapore's SICOM exchange for October delivery last traded at 136.1 US cents per kg, up 0.4%.

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