7 January 2014, 17:54 SEAST
Asian rubber settled lower Tuesday amid lingering concerns over China’s economic growth, sending Shanghai rubber futures down more than 4%.
Market sentiment has been poor, as four purchasing managers’ indexes for China showed declines in December.
Benchmark June natural rubber futures on the Tokyo Commodity Exchange settled 3.2% lower at Y254.3 a kilogram, just off a two-month low.
Despite losing 7.4% in the first two trading days of 2014, losses in Tocom rubber are likely to be limited around current levels, and a rebound is likely, said Chiaki Furui, chief executive of Agrow Enterprise, a Bangkok-based commodities brokerage. He said technical factors are driving the market, causing Tocom to be oversold.
Yium Tavarolit, chief executive of the Bangkok-based International Rubber Consortium, said in his weekly report that rubber prices are likely to be volatile this week due to weak investor confidence and poor market sentiment.
June Tocom rubber closed Y1.8 higher at Y256.1/kg in the night session, which is considered part of the next trading day.
Benchmark May natural rubber on the Shanghai Futures Exchange settled 2.7% lower after losing 4.4% intraday on concerns over economic growth in China. Trade participants are now looking to China trade data due on Wednesday and inflation figures on Thursday for further cues.
Physical rubber prices were lower in brisk trade, as buyers were out bargain hunting after two days of steep declines. Significant buyers on Tuesday included tire manufacturers and traders, a Singapore-based dealer said.
Source: Dow Jones , Bangkok
