Tokyo rubber futures ended the second quarter down more than 9 percent on concerns about economic growth in China, the world’s biggest rubber consumer, and on weaker oil prices, dealers said. The Tokyo Commodity Exchange rubber contract for December delivery dropped 4.3 yen, or 2 percent, to settle at 210.7 yen ($2.08) per kg.
“Investors liquidated contracts due to weak data in China and falling oil prices that weighed on the rubber market,” said a Bangkok-based trader. Brent futures dropped below $113 a barrel on Monday, adding to last week’s fall, as fears of a disruption in supplies from Iraq eased after government forces launched a pushback against a Sunni militant takeover of large areas of the country.
Annual growth in China’s industrial profits slowed to 8.9 percent in May, the weakest pace this year, signalling challenges facing Chinese firms despite signs of stabilisation in the economy. However, dealers said TOCOM prices could rebound on Tuesday after prices finished above a major support level of 210 yen.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 285 yuan to finish at 14,885 yuan ($2,400)per tonne. The front-month rubber contract on Singapore’s SICOM exchange for July delivery was last traded at 177.5 US cents per kg, down 1.1 cents.
– Reuters
