SINGAPORE: Japanese rubber futures fell from a seven-year high on Monday, hurt by a growth in inventories and lower oil prices.

The Osaka Exchange (OSE) rubber contract for August delivery closed down 5.1 yen or 1.67%, at 299.4 yen ($1.99) per kg.

The contract logged an intraday high of 305.8 yen, but fell short of Thursday’s seven-year closing high of 304.5 yen. Japanese markets were closed on Friday for a public holiday.

The rubber contract on the Shanghai futures exchange (SHFE) for May delivery slid 15 yuan, to finish at 13,750 yuan ($1,910.23) per metric ton.

Rubber inventories in warehouses monitored by the SHFE rose 1.1% from the last release on Feb. 8.

Oil prices fell on Monday, after the dollar rose amid market concerns that higher-than-expected inflation could delay cuts to high US interest rates that have been capping global fuel demand growth.

Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.

Toyota Motor has extended until March 1 the shutdown of two production lines at two manufacturing plants run by Toyota group companies in Japan.

A global slowdown in electric vehicle demand is rippling through the industry, costing jobs and leading to changes in strategic plans, layoffs and production cuts.

The Japanese yen strengthened 0.06% to 150.43 against the dollar.

Japan’s benchmark Nikkei average closed 0.35% higher.

China and the European Union held talks on progress and cooperation in a number of areas including automobiles and raw materials.

Top rubber producer Thailand’s meteorological agency has warned of summer storms in upper Thailand from Feb. 25-26 and March 1-2, potentially causing crop damage.

The front-month rubber contract on Singapore Exchange’s SICOM platform for March delivery last traded at 159.50 US cents per kg, down 0.5%.