BEIJING: Benchmark Tokyo rubber futures slid on Thursday on weak Shanghai rubber market and as high stockpiles weighed on prices.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, have been under pressure in the past month amid high rubber stocks and flat demand.
“The fundamentals remain stable. Rubber stockpile in the bonded area in Qingdao has returned to a high level, and stocks at Shanghai Futures Exchange are also high,” said Zhao Wenting, analyst with Dongwu Futures.
“In the short term, prices will probably fluctuate around these levels,” Zhao said.
The Tokyo Commodity Exchange rubber contract for December delivery finished 1.2 yen lower at 173.2 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 90 yuan to finish at 10,305 yuan per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 133.0 U.S. cents per kg, down 0.4 cent.