TOKYO, April 15 (Reuters) – Benchmark Tokyo rubber futures fell Friday, pressured by profit-taking ahead of an oil producers’ meeting on Sunday, but set for a weekly gain of more than 7 percent. Futures rose to a near 8-month high this week on hopes of a pickup in China’s demand.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, touched a high of 197.0 yen ($1.80) on Wednesday, the most since Aug. 11, 2015, as China’s strong trade data helped improve market sentiment.
China’s economy grew 6.7 percent in the first quarter from a year earlier, and while this was the slowest since 2009, it met expectations and provided additional evidence that a slowdown there may be bottoming out.
The TOCOM rubber contract for September delivery <0#2JRU:> finished 1.5 yen, or 0.8 percent, lower at 190.3 yen ($1.74) per kg, staying above a key 190 yen level.
For the week, it booked a 7.5 percent rise, the biggest gain in six weeks.
“Trade was mixed today as investors wanted to unwind their positions ahead of the oil producers’ meeting on the weekend,” said Toshitaka Tazawa, analyst at Fujitomi Co.
Oil producers led by top exporters Saudi Arabia and Russia plan to meet in Qatar on Sunday to discuss freezing output around current levels in an effort to contain a global supply glut that sees some 2 million barrels of crude produced every day in excess of demand.
Crude futures were steady on Friday in thin business as traders were reluctant to take on new positions ahead of a planned meeting at the weekend of major oil exporters who want to rein in ballooning global over-production.
“The TOCOM benchmark will need some fresh supporting factors to move above 200 yen. It may come under pressure next week and go back down to a 170-180 yen range,” Tazawa said.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 225 yuan to finish at 12,350 yuan ($1,905) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for May delivery last traded at 150.5 U.S. cents per kg, unchanged from the previous day.
($1 = 109.3500 yen)
($1 = 6.4831 Chinese yuan renminbi)
($1 = 109.2800 yen)
(Reporting by Yuka Obayashi; Editing by Christian Schmollinger)
