Benchmark Tokyo rubber futures slid on Friday, tracking Shanghai losses amid increasing supplies and dented demand ahead of a regional meeting to be held in a major tyre production hub.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, have also been pressured by renewed trade tension between China and the United States this week.
"The factors affecting rubber prices this week have been quite consistent — mainly the increasing supplies and impact from preparations of the Shanghai Cooperation Organisation summit," said Li Dongling, a senior analyst with First Futures.
The Tokyo Commodity Exchange rubber contract for November delivery finished 1.5 yen (US$0.0137) lower at 189.4 yen per kg. For the week, TOCOM rubber futures fell 1.8%.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 25 yuan (US$3.90) to 11,680 yuan per tonne.
Washington said earlier this week it still held the threat of imposing tariffs on US$50 billion of imports from China. In response, Beijing warned that it was ready to fight back if Washington was looking for a trade war, days ahead of a planned visit by US Commerce Secretary Wilbur Ross.
The front-month rubber contract on Singapore's SICOM exchange for June delivery last traded at 141.7 US cents per kg, down 0.1 cent.
Some tyre plants have already cut operation ahead of the SCO summit, which runs from June 9-10 in Qingdao. The summit will attempt to create new agreements on security issues such as counter-terrorism and drug smuggling among the seven-member bloc.
(US$1 = 109.2100 yen)
(US$1 = 6.4160 Chinese yuan)
