Benchmark Tokyo rubber futures rose for a second day on Friday on a weaker yen, ending the week with a slim gain, but interest was tepid as many investors stayed neutral due to year-end bearishness, dealers said. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, have so far fallen 26 percent this year on worries of excess supply from major Asian producers and weak demand in China, the world's top buyer. The TOCOM rubber contract for June delivery finished 0.7 yen higher at 204.1 yen ($2) per kg, after climbing to as high as 206.8 yen.
For the week, it eked out a gain of 0.3 yen, or 0.1 percent, marking a second weekly gain.
"The market could not hold above 205 yen as many investors were hesitant to take too many long positions before heading to new year holiday," a Tokyo-based trader said.
The Nikkei business daily reported on Friday that top Asian rubber producer Thailand, Indonesia and Malaysia were planning to invite neighbours Vietnam, Myanmar, Cambodia and Laos, to a meeting in February to talk about output adjustment to stabilise prices.
"The top producers have tried to do the same before, but they have failed to agree on effective measures. Market participants are sceptical on what they can come up with from the meeting," the dealer said.
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