Benchmark Tokyo rubber futures dropped on ample supplies and weak demand on Friday, amid tracking losses in Shanghai market.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, have been under pressure due to high rubber and weak demand from tyre factories.
"Fundamentals for rubber have been quite stable in the past 4-5 weeks. Weather is normal in major producers such as Thailand and Yunnan, leading to ample supplies. Domestic stocks are also high," said Hu Haitao, researcher, Yinglu Asset Management (Shanghai) Co Ltd.
"Downstream demand is weak as tyre sales are flat and operation rate at tyre factories started to drop due to high temperature in the third quarter," Hu said.
The Tokyo Commodity Exchange rubber contract for December delivery finished 2.4 yen lower at 170.8 yen per kg. For the week, TOCOM rubber futures fell 1.2%.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 65 yuan to finish at 10,285 yuan per tonne.
The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 132.9 US cents per kg, down 0.6 cent.
