SINGAPORE: Japanese rubber futures dipped on Friday, on track to post their first annual decline since 2018 as global recessionary fears and concerns over slow demand in top buyer China weighed on demand sentiment over the past year.

The Osaka Exchange rubber contract for June delivery was down 0.6 yen, or 0.3%, at 218.4 yen ($1.65) per kg as of 0205 GMT, declining about 0.7% for the week. The benchmark OSE contract has declined about 8.2% for the year. The OSE will be closed on Monday for the observation of New Year’s Day and on Tuesday for a market holiday in Japan. The rubber contract on the Shanghai futures exchange for May delivery was down 55 yuan, or 0.4%, at 12,660 yuan ($1,820) per tonne. Japan’s benchmark Nikkei share average opened up 0.74%. Rubber demand sentiment has been mixed in recent weeks after top buyer China relaxed strict Covid curbs, which was met with a fresh wave of new infections, limiting industrial activity and consumption.