TOKYO (March 9): Benchmark Tokyo rubber futures erased early gains to hit a one-week low on Friday, as the market came under pressure from sharp losses in Shanghai futures.
Concerns about the global trade following US President Donald Trump’s 25% import tariff on steel and 10% tariff on aluminium are weighing on the Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, sources said.
“As the global economy decelerates, the commodities will be hit as well, which would cast a shadow over the outlook for rising commodities demand,” said a Japanese industry source.
The Tokyo Commodity Exchange rubber contract for August delivery finished 1.9 yen lower at 189.8 yen (US$1.78) per kg after hitting a one-week low earlier.
For the week, it declined 0.9%, the first weekly drop in three.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 285 yuan to finish at 12,620 yuan (US$1,991) per tonne.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.2% from last Friday, the exchange said on Friday.
The front-month rubber contract on Singapore’s SICOM exchange for April delivery last traded at 145.2 US cents per kg, down 1.8 cents.
(US$1 = 6.3395 Chinese yuan)
(US$1 = 106.7100 yen)
