TOKYO (July 3): Benchmark Tokyo rubber futures extended falls on Tuesday and touched a one-week low amid continued worries about the impact of trade tensions between the United States and China, and high stockpiles in China and Japan.
Tensions are high between the two countries over the threat of tariffs.
US President Donald Trump’s administration is set to impose tariffs on US$34 billion worth of additional goods from China on Friday citing unfair Chinese trade practices, and has threatened successive waves of duties on up to US$450 billion in Chinese imports.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, have been under pressure from worries over high stockpiles in China and Japan.
“The trade tensions in China and the United States are seen leading to a slowing of the growth industries and personal consumption,” said a Japanese trading source.
The Tokyo Commodity Exchange rubber contract for December delivery finished 1.5 yen lower at 172.3 yen (US$1.55) per kg, after touching 170.4 yen earlier, the lowest since June 26.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 30 yuan to finish at 10,535 yuan (US$1,577) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 131 US cents per kg, down 1.9 cents.
(US$1 = 6.6800 Chinese yuan)
(US$1 = 111.0400 yen)
