Benchmark Tokyo rubber futures dropped on Friday as investors took profits following a fall in Shanghai futures and ahead of the weekend, but it marked a third straight weekly gain, backed by firmer demand in China, the world's biggest rubber buyer.
The Tokyo Commodity Exchange (TOCOM) rubber contract for January delivery finished 1.0 yen lower at 216.2 yen (US$1.98) per kg, sliding from a near 3-month high of 220.3 yen touched the previous day.
For the week, it managed to post a 1% gain.
"Shanghai futures have been tracking base metals markets lately and Shanghai's overnight loss following weaker metals prices prompted investors in Tokyo to take profits in early trade," said Toshitaka Tazawa, analyst at Fujitomi Co.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 20 yuan to finish at 16,580 yuan (US$2,485) per tonne, after touching a low of 16,110 yuan earlier in the session.
Shanghai metals futures opened lower across the board on Friday, weighed down by currency uncertainty and negative sentiment in metals markets overnight, although zinc prices rallied close to decade-highs for the second time this week, leading mixed trading in base metals in later trade.
"Shanghai rubber has tried but failed to reach a key 17,000 yuan mark. If it breaks above that level next week, it will help boost the TOCOM above 220 yen, but an opposite scenario will mean a downside risk to the TOCOM," Tazawa said.
The front-month rubber contract on Singapore's SICOM exchange for September delivery last traded at 155.1 US cents per kg, up 1.2 cent.
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