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Saturday, October 16, 2021

Rubber Extends Loss as Selling in Shanghai Spurs Demand Concern

Rubber futures declined for a second day as a drop in the Chinese market increased concern demand may weaken in the world’s largest consumer.

The February contract fell as much as 0.8 percent to 279.3 yen a kilogram ($2,800 a metric ton) on the Tokyo Commodity Exchange and traded at 280.9 yen at 11:53 a.m. local time.

China’s stocks fell the most in two weeks, led by material producers and port operators. Chinese leaders are extending a clampdown on credit, prompting analysts from JPMorgan Chase & Co. to Societe Generale SA to caution that the economy is vulnerable to weakening after the pickup so far this quarter.

“Futures lost upward steam as concern about China’s economy remains,” said Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo.

Losses in futures were limited after data showed U.S. car sales expanded more than analysts estimated last month, improving the outlook for demand of the commodity used in tires. Car and light truck sales rose 17 percent to 1.5 million units in August, the most since May 2007, according to researcher Autodata Corp.

Thai rubber free-on-board added 0.6 percent to 86.40 baht ($2.68) a kilogram yesterday, according to data from the Rubber Research Institute of Thailand. The contract for January delivery lost 0.5 percent to 20,590 yuan ($3,364) a ton on the Shanghai Futures Exchange.

Source: Bloomberg

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