Asian rubber settled mixed Tuesday, despite China’s inflation data matching expectations, as concerns about the country’s liquidity still weighed, sending Shanghai rubber down over 2% at the closing bell and giving traders an excuse to lock in profits later in the evening.
Benchmark December natural rubber futures on the Tokyo Commodity Exchange settled Y1.4 higher at Y241.5 a kilogram, helped by a weak yen and supply tightness.
International Rubber Consortium chief executive Yium Tavarolit said in a weekly market report that the three major producing countries of Thailand, Indonesia and Malaysia have used up 300,000 metric tons of rubber stocks–the same amount under a collective export curb from October to March.
“Supply is very tight in south Thailand,” he added.
He said rain has been disrupting tapping in south Thailand and production is also likely to slow due to the Muslim fasting month of Ramadan, which begins this week.
December Tocom rubber closed Y4.7 lower at Y236.8/kg in the night session, which is considered part of the next trading day.
Physical rubber prices were mixed, in line with a similar performance in rubber futures. Thai raw material is tight due to heavy rain in the country, so prices are holding firm, said traders.
Source: IRCo
