TOKYO (Sept 8): Benchmark Tokyo rubber futures ended up 0.1% on Tuesday, in line with Shanghai futures, though the gains were limited after Chinese trade data for August reinforced worries growth in the world’s second-biggest economy is slowing down.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, held close to a six-year low hit on Monday amid worries over a supply glut in Asia.
China’s August exports fell less than expected but a steeper slide in imports pointed to continuing economic weakness, trade data showed, adding to concerns over the health of its economy that have been rattling global markets.
“Slowdown in Chinese demand could have sent TOCOM sharply lower, but the market did not budge after it had fallen sharply recently,” said a source with a Tokyo-based broker.
The Tokyo Commodity Exchange rubber contract for February delivery finished 0.2 yen higher at 167.6 yen per kg. The benchmark contract hit an intraday low of 162.7 yen on Monday, the weakest since July 16, 2009.
China’s imports of natural and synthetic rubber in August fell 4.8% from the previous month to 400,000 tonnes, trade data showed on Tuesday. For the year to date, imports were up 1.2%.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 190 yuan to finish at 11,600 yuan per tonne.
The U.S. dollar was quoted at around 119.86 yen, compared with around 119.30-119.38 yen on Monday afternoon.
The front-month rubber contract on Singapore’s SICOM exchange for October delivery last traded at 123.90 U.S. cents per kg, up 0.3 cent.
