SINGAPORE: Japanese rubber futures tumbled on Friday, tracking a weaker Shanghai market, while rising domestic core consumer prices dented sentiment further.
The Osaka Exchange rubber contract for September delivery was down 6.8 yen, or 2.6 %, at 254.6 yen ($1.98) per kg as of 0141 GMT, after touching the lowest level since March 30 of 253.5 yen earlier in the session.
The benchmark was on track for its first weekly drop in six. Japan’s core consumer prices rose at the fastest pace in more than two years in March, raising worries higher energy and food costs could increasingly take a toll on households’ purchasing power.
Japan’s benchmark Nikkei share average was down 2.1% on Friday. Honda Motor Co is planning to cut production by about 50% on two lines of one of its domestic factories in early May due to chip shortages and COVID-19 lockdowns, the company said on Thursday. The rubber contract on the Shanghai futures exchange for September delivery was down 275 yuan, or 2.1%, at 13,055 yuan ($2,023.06) per tonne, after touching the lowest level since July 22 2021 of 13,025 yuan earlier in the session.
Shanghai said on Friday it would lift its lockdown in batches once virus transmission outside quarantined areas was stamped out. The front-month rubber contract on Singapore Exchange’s SICOM platform for May delivery last traded at 167.8 US cents per kg, down 1.4%.
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