Japanese rubber futures lost ground on Wednesday, with market sentiment weighed by unresolved trade tensions between China and the Netherlands, which threatens European carmakers’ production.
The Osaka Exchange (OSE) rubber contract for March delivery 
TRB1!, TRB1! was down 1.5 yen, or 0.49%, at 307 yen($2.04) per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery RSS31! gained 150 yuan, or 1%, to 15,150 yuan ($2,126.91) per metric ton.
The most active November butadiene rubber contract on the SHFE (SHBRv1) added 95 yuan, or 0.87%, to 11,050 yuan per metric ton.
Dutch and Chinese ministers failed to resolve a dispute over chipmaker Nexperia after the Dutch government seized control of the company, citing security concerns, prompting China to block its chip exports.
This move threatens European carmakers, especially in Germany, with possible production shortages, as Nexperia’s chips are vital and hard to source elsewhere, adding to existing global trade tensions.
Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
Elsewhere, the European Commission proposed a further softening of the EU anti-deforestation law on Tuesday, relieving the reporting burden for many smallholders and businesses.
The law is slated to come into effect on December 30, 2025, though checks and enforcement for larger companies would only apply from June 30, 2026.
This is unlikely to totally change demand as most consumers have prepared accordingly whilst this uncertainty prevails, though it may support EUDR premiums which were compressed in the past few months, said Farah Miller, founder of independent rubber-focused firm Helixtap Technologies.
The front-month rubber contract on Singapore Exchange’s SICOM platform for November delivery TF1! last traded at 171.9 U.S. cents per kg, down 0.2%.