TOKYO (March 10): Benchmark Tokyo rubber futures extended declines for a third day, with a 0.8% fall on Thursday, on concerns over a Chinese economic slowdown.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, has declined 7.2% from Monday’s 6-1/2-month high, as weak Chinese trade data this week rekindled worries over its economic growth.
The Tokyo Commodity Exchange rubber contract for August delivery finished 1.4 yen lower at 171.4 yen (US$1.51) per kg.
“The market moved in tight ranges in sort of a break after volatile trading in the past two days,” said a source with a Tokyo-based broker. “TOCOM also failed to get a major support from a stronger dollar.”
The U.S. dollar was quoted around 113.63 yen, compared with around 112.47 yen on Wednesday afternoon.
TOCOM earlier rose as much as 2.4%, after U.S. crude hit 2016 highs the day before.
China’s consumer inflation beat forecasts in February, accelerating at its fastest pace since July 2014, while producer prices slowed their slide for the second straight month, taking some pressure off policymakers to rush out more monetary easing.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 165 yuan (US$25.32) to finish at 11,185 yuan per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for April delivery last traded at 124 U.S. cents per kg, down 3.8 cents, or 3%.
(US$1 = 113.6200 yen)
(US$1 = 6.5157 Chinese yuan)
