Rubber markets in Asia stayed in a downward trend during the week in the wake of weak rubber market sentiments and investor confidence, after China released data showing the economy in 2013 recorded its lowest growth rate for more than a decade and its manufacturing activity shrank in January for the first time in six months.
In the meantime, the yen continued strengthening against the dollar but crude oil futures on Nymex improved. The Dow Jones Industrial Average and the Tokyo Nikkei index tumbled, butShanghai stock index ended up.
Supplies of natural rubber in Thailand have been declining consecutively because of the early dry wintering in January and lower rubber tapping in the South of the country as most of rubber farmers from the South of the country have been participating in a political demonstration in Bangkok.
In addition, Toyota Motor Corp., the world’s biggest auto maker, indicates solid auto demand into this year and aims to sell 10 million units of cars and truck globally this year, or 3.4% more than last year.
As mentioned earlier that natural rubber prices will recover from current levels in the coming months if rubber market fundamentals could outweigh the currently weak rubber market sentiment and investor confidence.
Source: IRCo
