Benchmark Tokyo rubber futures fell for a fourth straight session on Thursday and hit a 21-month low, with financial markets jittery a day before China and the United States were set to hit one another with punitive tariffs that risked triggering a full-scale trade war.
The Tokyo Commodity Exchange rubber contract for December delivery finished 1.6 yen lower at 169.5 yen ($1.53) per kg, after hitting 166.9 yen earlier, the lowest since October 2016. The Tokyo Commodity Exchange said on Thursday that it expects to launch technically specified rubber (TSR) futures on the bourse around Oct. 9 after gaining government approval.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 20 yuan to finish at 10,405 yuan ($1,569) per tonne. The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 129.1 US cents per kg, down 0.5 cent.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, have also been under pressure from mounting stockpiles in major consuming countries including China, and excess supplies. The United States plans to implement tariffs on $50 billion worth of imports from China as both nations remained locked in a bitter trade dispute that has convulsed global financial markets in recent weeks.
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