TOKYO, Aug 18 (Reuters) – Benchmark Tokyo rubber futuresended up 0.3 percent on Monday, hovering close to a two-monthlow amid worries about demand from top consumer China.
The benchmark rubber contract on the Tokyo CommodityExchange (TOCOM) for January delivery rose 0.6 yen tosettle at 197.5 yen ($1.93) per kg. The contract hit an intradaylow of 195.0 yen, the lowest since June 10.
Tokyo rubber futures, which set the tone for tyre-gradeprices, are likely to trade in a tight range this week, dealerssaid on Monday.
“If physical prices continue going down, then we can’t hopefor the futures market to go up. Sentiment is bearish. Buyersare just looking to wait and see, and they are just buyingthings they need,” said Gu Jiong, an analyst at Yutaka Shoji Coin Tokyo.
“They won’t stock up. This week’s trading range is 190 to200 yen.”
Vietnam, the world’s third-largest natural rubber producerafter Thailand and Indonesia, exported $832 million worth ofrubber, or 451,000 tonnes, in January-July, down 32.3 percentfrom a year ago, according to the Vietnam Rubber Association,the Sai Gon Giai Phong newspaper reported.
Declining prices have prompted farmers to cut down rubberplantation and total shipment this year is expected to fall 7percent to 1 million tonnes, the report said.
The most-active rubber contract on the Shanghai futuresexchange for January delivery rose 5 yuan to finish at14,910 yuan ($2,427) per tonne.
The front-month rubber contract on Singapore’s SICOMexchange for September delivery last traded at 163.60U.S. cents per kg, down 0.8 cent.
(1 US dollar = 102.3600 Japanese yen)
(1 US dollar = 6.1444 Chinese yuan)
(Reporting by Osamu Tsukimori in TOKYO and Lewa Pardomuan inSINGAPORE; Editing by Anupama Dwivedi)
– Reuters
