TOKYO (Nov 15): Benchmark Tokyo rubber futures plunged more than 4% to a two-week low on Wednesday, following a decline in Shanghai futures, as tumbling base metal prices and concerns over weaker economy in top buyer China weighed on sentiment, dealers said.
China’s economy cooled further last month, with industrial output, fixed asset investment and retail sales missing expectations as the government extended a crackdown on debt risks and factory pollution.
“A sharp drop in prices of base metals amid growing worries over Chinese economy triggered sell-off in Shanghai and Tokyo rubber markets,” said Toshitaka Tazawa, analyst, Fujitomi Co.
Shanghai nickel and zinc tumbled alongside steel on Wednesday, extending losses from the previous session, as traders cut exposure to the sector following cooling industrial production growth and property sales in China.
The Tokyo Commodity Exchange (TOCOM) rubber contract for April delivery finished down 9.0 yen, or 4.5%, at 193.0 yen (US$1.71) per kg. Earlier in the session, it hit 192.1 yen, its lowest since Oct. 31.
The most-active rubber contract on the Shanghai futures exchange for January delivery tumbled 890 yuan to finish at 13,270 yuan (US$2,001) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for December delivery last traded at 139.0 US cents per kg, down 4.9 cents.
(US$1 = 6.6332 Chinese yuan)
(US$1 = 112.8200 yen)
