Key TOCOM rubber futures shed early gains to end almost flat on Monday, hit by fresh evidence of slower growth in China, the world's biggest rubber consumer. Some traders said that prices could drop further this week, with the introduction of export curbs in key producers Thailand, Indonesia and Malaysia on Monday having only a limited impact as they had already been factored into markets since their announcement in August.
"The market has risen since August on the news (of the curbs), but investors have already taken them into account and could start to sell a bit this week," said Kazuhiko Saito, chief commodities analyst at trading house Fujitomi Co. He sees support at around 250-255 yen.
TOCOM trade is likely to be subdued, however, as Chinese markets are closed for the week due to a national holiday. The key Tokyo Commodity Exchange rubber contract for March delivery ended flat at 260.5 yen per kg after rising to an intraday high of 262 yen. The front-month November rubber contract on SICOM in Singapore was last traded at 292.80 US cents per kg, down 1.3 cents.
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