BEIJING (June 22): Benchmark Tokyo rubber futures declined slightly on Friday, even as Shanghai rubber recovered from a sharp drop.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia and usually track moves of Shanghai futures, fell as yen appreciated against the US dollar in the past week.
“Shanghai gains were mainly because there was a need for recovery after sharp fall earlier. Factories and traders were willing to build up stocks, pushing up prices,” said Zhu Ziyue, analyst with Hongyuan Futures.
“Tokyo rubber has been affected by the appreciation of yen lately, but should come on track with Shanghai rubber in the future,” Zhu said.
The Tokyo Commodity Exchange rubber contract for November delivery finished 0.8 yen (US$0.0073) lower at 173.4 yen per kg, ending the week with a 3.6% loss.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 115 yuan (US$17.70) to finish at 10,480 yuan per tonne.
The contract tumbled over 3% on Tuesday, after trade tension between China and the United States escalated again.
The front-month rubber contract on Singapore’s SICOM exchange for July delivery last traded at 133.9 US cents per kg, down 0.1 cent.
The US dollar was quoted around 110.12 yen on Friday afternoon, compared with around 110.54 yen on Monday.
(US$1 = 110.1200 yen)
(US$1 = 6.4989 Chinese yuan)
