Japan futures extend declines as firm supply, China auto price war weighs
Japanese rubber futures fell for a sixth straight session on Wednesday as seasonal harvesting boosted supply prospects, while concerns over an intensifying price war in
China
's automobile market weighed on sentiment for the tyre-making material.
The
Osaka Exchange
(
OSE
) rubber contract for November delivery was down 0.9 yen, or 0.31%, at 286.1 yen ($1.99) per kg as of 0209 GMT.
The natural rubber-producing areas in China and
Vietnam
have begun harvesting, and the output of raw materials has increased significantly, said Chinese financial information site
Tonghuashun Information
.
Rubber crops usually undergo a season of low production from February to May, followed by a peak harvesting period that lasts until September.
Meanwhile, leading automakers have launched a price war that has further suppressed tyre demand, added Tonghuashun.
In China, an intensifying auto industry price war has stoked fears of a long-anticipated shake-out in the world's largest car market.
Moreover, alarm over China's stranglehold on critical minerals grew on Tuesday as global automakers complained that restrictions by China on exports of rare earth alloys, mixtures, and magnets could cause production delays and outages.
On the trade front, the
White House
signalled that President
Donald Trump
and Chinese President
Xi Jinping
might engage in talks later this week, after the two sides accused each other of violating the terms of an agreement reached last month to roll back some tariffs.
The front-month rubber contract on Singapore Exchange's SICOM platform for June delivery last traded at 158.6 U.S. cents per kg, down 0.1%.
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