Tokyo rubber futures reversed their late recovery in the previous session to fall about 1 percent on Tuesday as the market refocused on bearish incentives such as rising Japanese inventories and firmness in the yen.
Benchmark Tokyo Commodity Exchange rubber for May delivery fell 2.1 yen a kg or 1 percent to 195.7 yen. On Monday the May TOCOM contract fell as low as 190.5 yen, the lowest since November 27, before bouncing back on fresh buying to finish the day at 197.8 yen.
Market bears were seen keen to sell after heavy stop-loss selling pushed the key contract below the closely watched level of 200 yen on Friday. Data from the Japan Automobile Tyre Manufacturers' Association on Friday showed that inventories of auto tyres rose 10.3 percent to 53,737 tonnes in October.
Separate data from the Rubber Trade Association of Japan on Thursday showed that crude rubber stocks held at Japanese warehouses jumped 22 percent to 11,494 tonnes by November 20 from 9,404 tonnes on November 10.
Prices were under additional pressure as a two-day meeting of the International Rubber Consortium, established by key Asian rubber producers, ended late last week without deciding on action to support prices. A stronger yen against the dollar makes yen-denominated commodities cheaper in the dollar-billed export market, which normally leads to lower TOCOM prices.
The dollar stayed near a four-month low of 114.97 yen marked at the end of last week. It traded at around 115.35 yen in early Tokyo trade on Tuesday, compared with 115.31 yen in late New York on Monday.
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