TOKYO (Sept 4): Benchmark Tokyo rubber futures fell 0.1 percent on Thursday, declining for a second straight session, as the Thai government’s sale of half of its rubber stockpile raised concerns of surplus supplies in an already well-stocked market.
The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for February delivery fell 0.3 yen to settle at 199.8 yen ($1.90) per kg.
Global rubber prices have tumbled in recent years, with the benchmark Thai smoked rubber sheet (RSS3) being offered on Wednesday at $1.80 per kg, far below a record $6.40 per kg in 2011, due to concerns about oversupply and weak demand from top consumer China.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 90 yuan to finish at 14,470 yuan ($2,357) per tonne, recovering from its lowest since December 2008 hit on Wednesday.
“Rubber production is constant and there’s no pressure to lower output,” said a Tokyo-based broker. “Structurally, the market is in over-supply. TOCOM is likely to head further down.”
The front-month rubber contract on Singapore’s SICOM exchange for October delivery last traded unchanged at 162.40 U.S. cents per kg.
(1 US dollar = 104.9600 Japanese yen)
(1 US dollar = 6.1383 Chinese yuan)
– Reuters
