Benchmark Tokyo rubber futures inched lower on Wednesday, paring its 1.1 percent gain of the previous day, dragged down by weak Shanghai futures, but further declines were capped on the yen's slide to a seven-year low against the dollar. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, were trading near a three-week low hit on Monday amid worries over a global supply glut.
The Tokyo Commodity Exchange rubber contract for May delivery finished 0.1 yen lower at 198.2 yen($1.66) per kg. The most-active rubber contract on the Shanghai futures exchange for May delivery fell 80 yuan to finish at 12,515 yuan ($2,036) per tonne, as data showing an improvement in China's services sector was seen unlikely to allay concerns about the softening Chinese economy.
"Chinese data did not show a dramatic improvement," said a Tokyo-based broker. "The rubber market's direction overall is headed downward, I think." The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 148.00 US cents per kg, down 1.6 cents.
Comments
Comments are closed.