TOKYO (May 10): Benchmark Tokyo rubber futures erased early gains on Wednesday to end nearly flat after Shanghai futures hit a new eight-month low amid worries over supply glut.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, finished slightly higher on the back of a weaker yen against the dollar, brokers said.
“In Shanghai, there is still a lingering concern about oversupply,” said a Tokyo-based broker.
The Tokyo Commodity Exchange rubber contract for October delivery finished 0.4 yen higher at 209.1 yen (US$1.84) per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery was up nearly 2% earlier in the session, before reversing gains to close 255 yuan lower at 13,305 yuan (US$1,927) per tonne. It hit 13,225 yuan earlier in the day, the lowest since Sept 1, 2016.
China’s April producer price inflation cooled more than expected in a sign manufacturing activity may be losing momentum along with other sectors of the economy as domestic demand remains muted and the government cracks down on financial risks.
Singapore’s SICOM exchange was closed for a holiday.
(US$1 = 113.8700 yen)
(US$1 = 6.9054 Chinese yuan)
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