RUBBER-Japan futures extend decline as oil prices, commodity rally ease

By Ruth Chai

Feb 2 (Reuters) -

• Japanese rubber futures declined for a second consecutive session on Monday, weighed down by a cooling in the broad-based commodities rally and lower oil prices.

• The Osaka Exchange (OSE) rubber contract for July delivery JRUc6, 0#2JRU: was down 6 yen, or 1.74%, at 338.5 yen ($2.18) per kg, as of 0147 GMT.

• The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery SNRv1 fell 455 yuan, or 2.74%, to 16,145 yuan ($2,322.79) per metric ton.

• The most active March butadiene rubber contract on the SHFE SHBRv1 fell 470 yuan, or 3.46%, to 13,100 yuan per metric ton.

• Oil prices fell by nearly 3% on Monday as U.S. President Donald Trump said over the weekend Iran was "seriously talking" with Washington, signalling de-escalation with an OPEC member after risks of a military strike drove prices to multi-month highs. O/R

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

• Profit-taking by Chinese fund managers and short-covering led to a sharp increase in trading volume, while open interest on the Shanghai exchange fell sharply amid month-end position adjustments, the Japan Exchange Group said in a report on Monday.

• Overall rubber prices remained firm, supported by the recent rally in broader commodity markets such as copper and crude oil, the report added.

• OSE ribbed smoked sheet stocks in December 2025 have also declined to around 2,000 metric tons, their lowest in six years, according to data from the Japanese Exchange Group.

• However, a tapering off of supply may provide some upward support for prices.

• Rubber crops usually undergo a season of low production from February to May, before a peak harvesting period that lasts until September.

• The front-month rubber contract on Singapore Exchange's SICOM platform for March delivery STFc1 last traded at 186.3 U.S. cents per kg, down 1.4%.

($1 = 155.1100 yen)

($1 = 6.9507 yuan)