Nginx Url Rewriting: Remove folder from the url

Im trying to rewrite a url like below:

https://example.com/products/xperia-z5/ to--> https://example.com/xperia-z5/

But i want in the same time the url https://example.com/products/ to be accessible, without any modifications since its a product catalog.

For organizing reasons i keep my files in /products/file1, file2 etc.
Perhaps i should be using "alias" and not "rewrite"?

Perhaps i must change something in the try_files directive, or something is wrong with the @extensionless-php location, i'm totally confused.
Please advice.

Thank you.

Below is my server.conf config

server {
    server_name 192.168.10.1;
    listen      80;
    root        /home/webmaster/example.com/html_public;
    charset     UTF-8;

    # replace .php extension with trailing slash
    location @extensionless-php {
        rewrite ^(.*)/$ $1.php last;
        rewrite ^(.*[^/])$ $1/ permanent;
    }
    location / {
    try_files $uri $uri/ @extensionless-php;
    }
    error_page  404    /404.php;
    #pass the PHP scripts to FastCGI server listening on php-fpm unix socket
    location ~ \.php$ {
        try_files       $uri =404;
        fastcgi_index   index.php;
        fastcgi_pass    unix:/tmp/php5-fpm.sock;
        fastcgi_split_path_info ^(.+\.php)(/.+)$;
        fastcgi_param   SCRIPT_FILENAME  $document_root$fastcgi_script_name;
        fastcgi_intercept_errors on;
        fastcgi_ignore_client_abort off;
        fastcgi_connect_timeout 60;
        fastcgi_send_timeout 180;
        fastcgi_read_timeout 180;
        fastcgi_buffer_size 128k;
        fastcgi_buffers 4 256k;
        fastcgi_busy_buffers_size 256k;
        fastcgi_temp_file_write_size 256k;
        include fastcgi_params;
    }
    location /products/$ {
        rewrite ^/products/(.*)$ /$1 break;
    }
}

When i try to request http://192.168.10.1/xperia-z5/ in the logs im getting this (with 404):

2016/04/25 16:50:19 [notice] 10191#0: *1 "^(.*)/$" matches "/xperia-z5/", client: 192.168.10.2, server: 192.168.10.1, request: "GET /xperia-z5/ HTTP/1.1", host: "192.168.10.1"
2016/04/25 16:50:19 [notice] 10191#0: *1 "^(.*)/$" matches "/xperia-z5/", client: 192.168.10.2, server: 192.168.10.1, request: "GET /xperia-z5/ HTTP/1.1", host: "192.168.10.1"
2016/04/25 16:50:19 [notice] 10191#0: *1 rewritten data: "/xperia-z5.php", args: "", client: 192.168.10.2, server: 192.168.10.1, request: "GET /xperia-z5/ HTTP/1.1", host: "192.168.10.1"
2016/04/25 16:50:19 [notice] 10191#0: *1 rewritten data: "/xperia-z5.php", args: "", client: 192.168.10.2, server: 192.168.10.1, request: "GET /xperia-z5/ HTTP/1.1", host: "192.168.10.1"
2016/04/25 16:50:19 [info] 10191#0: *1 recv() failed (104: Connection reset by peer), client: 192.168.10.2, server: 192.168.10.1, request: "GET /xperia-z5/ HTTP/1.1", host: "192.168.10.1"