Benchmark Tokyo rubber futures edged up from early losses on Tuesday, tracking gains in Shanghai rubber market, propped up by rising industrial commodity futures in China. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, bounced on gains in Shanghai, but were still under pressure from high inventories and sluggish demand.
The Tokyo Commodity Exchange rubber contract for November delivery finished 0.9 yen ($0.0083) higher at 194.3 yen per kg. The most-active rubber contract on the Shanghai futures exchange for September delivery rose 170 yuan ($26.50) to finish at 11,930 yuan per tonne. The front-month rubber contract on Singapore's SICOM exchange for June delivery last traded at 144.3 US cents per kg, down 0.4 cent.
"The rise was basically tracking gains in other black commodities such as coking coal and rebar," said Li Dongling, senior analyst, First Futures. "But the support is not that strong as inventories are still high and demand remains flat," Li added. China's coke, coking coal jumped 4 percent on Tuesday as rebar extended gains.
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