TOKYO (Aug 22): Benchmark Tokyo rubber futures inched lower on Tuesday, pressured by weaker oil prices overnight, but losses were partially offset by healthy sentiment in the industrial metals market.
The Tokyo Commodity Exchange (TOCOM) rubber contract for January delivery finished 0.3 yen lower at 216.5 yen (US$1.98) per kg.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 105 yuan to close at 16,700 yuan (US$2,509.5) per tonne.
“Like crude oil market, rubber prices have been stuck in a narrow range of between 178 yen and 230 yen in recent months as there has been no significant fundamental news,” said Masayo Kondo, president of Commodity Intelligence, a Japanese commodity market research company.
“I expect the boxed-ranged trading to continue for a while unless the US stock market takes a deep dive, bringing the Nikkei stock index down,” he said.
Oil prices fell nearly 2% on Monday, pulling back from last week’s rally, but were up slightly on Tuesday amid indications that supply is gradually tightening.
London copper rose to a fresh three-year high on Tuesday after a string of results from mining companies buoyed sentiment towards the sector, which also found wider support from robust gains in steel material prices in China.
The front-month rubber contract on Singapore’s SICOM exchange for September delivery last traded at 154.6 US cents per kg, down 0.1 cent.
(US$1 = 109.3300 yen)
(US$1 = 6.6546 Chinese yuan)
