TOCOM rubber erases early gains to hit 1-week low

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(March 9): Benchmark erased early gains to hit a one-week low on Friday, as the market came under pressure from sharp losses in Shanghai .

Concerns about the global trade following President Donald Trump’s 25% import tariff on steel and 10% tariff on aluminium are weighing on the (TOCOM) futures, which set the tone for in , sources said.

“As the global economy decelerates, the commodities will be hit as well, which would cast a shadow over the outlook for rising commodities demand,” said a Japanese industry source.

The Tokyo Commodity Exchange rubber contract for August delivery finished 1.9 yen lower at 189.8 yen (US$1.78) per kg after hitting a one-week low earlier.

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For the week, declined 0.9%, the first weekly drop in three.

The most-active rubber contract on the for May delivery fell 285 yuan to finish at 12,620 yuan (US$1,991) per tonne.

Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.2% from last Friday, the exchange said on Friday.

The front-month rubber contract on ’s exchange for April delivery last traded at 145.2 US cents per kg, down 1.8 cents.

(US$1 = 6.3395 Chinese yuan)
(US$1 = 106.7100 yen)

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