TOKYO, Dec 14 (Reuters) – Benchmark TOCOM rubber futures extended declines for a third day on Monday, falling around 1 percent, weighed by a stronger yen against the dollar and worries about slowing demand by top consumer China.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for May delivery JRUc6 0#2JRU: fell 1.8 yen to 166.2 yen per kg by 0033 GMT, after settling down 0.5 yen on Friday. The contract hit a low of 165.1 yen earlier, the lowest since Dec.2, also coming under pressure from the losses in other commodities such as oil.
Japanese business sentiment held steady in the three months to December, a closely-watched central bank survey showed on Monday, offering some relief to policymakers worried that global economic uncertainties could undermine corporate readiness to spend.
China’s output of key industrial commodities including coal and steel remained weak in November amid chronic oversupply as slowing construction demand took its toll.
November, with factory output growth picking up to a five-month high, signalling that a flurry of stimulus measures from Beijing may have put a floor under a fragile economy.
Saudi Basic Industries Corp (SABIC) said commissioning would begin at parts of its affiliate’s new elastomers facility Kemya Complex on Sunday following the completion of construction and mechanical works.
The project, estimated to cost $3.4 billion, is expected to supply over 400,000 metric tonnes per year of rubber, thermoplastic speciality polymers and carbon black to serve emerging local and international markets in Asia and the Middle East.
MARKET NEWS
The U.S. dollar was quoted around 120.83 yen JPY= , compared with around 121.99 yen on Friday afternoon.A stronger yen makes Japanese currency-denominated assets more expensive when purchased in other currencies.
Japan’s benchmark Nikkei stock average .N225 was down 2.6 percent.
U.S.oil prices were little changed on Monday after settling on Friday in the $35 territory the first time since February 2009.
DATA/EVENTS (GMT)
The following data is expected on Monday: (Time in GMT)
– 2350 Japan tankan big mf index Q4
– 1000 Euro zone Industrial production Oct
(Reporting by Osamu Tsukimori; Editing by Michael Perry)
