Key Tokyo rubber futures settled slightly higher in thin trade on Tuesday after a rally in Shagnhai and solid Tokyo share prices lifted the market from negative territory, though concerns of a slowdown in demand capped gains. The key Tokyo Commodity Exchange rubber contract for November delivery settled up 0.7 yen at 392.8 yen per kg, after falling as low as 2.1 percent.
The most active Shanghai rubber contract for September delivery climbed to 33,410 yuan per tonne, up from Friday's closing price of 33,365 yuan. Volume stood at 928,656 lots. "The market is slack as investors lacked clues on direction, with firm oil prices and a recovery in Japan's car output lending support, while a slowdown in the Chinese economy hurt sentiment," said Hiroyuki Kikukawa, a general manager at trading company Nihon Unicom Inc in Tokyo. Investors are nervously watching for signs of a further weakening in Chinese demand and a gradual increase in supply from Thailand.
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