Benchmark Tokyo rubber futures slumped to a nearly 22-month low on Tuesday on concerns that an escalating US-China trade dispute may dent growth in China, the world's biggest rubber buyer. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, extended losses into a fourth straight session.
The TOCOM rubber contract for December delivery finished 1.7 yen lower at 166.3 yen ($1.5) per kg. It hit its lowest since Oct 5, 2016 of 166.0 yen earlier in the session. The most-active rubber contract on the Shanghai futures exchange for September delivery slid 85 yuan to finish at 10,110 yuan ($1,487) per tonne after touching an about 1-month low of 10,050 yuan earlier in the session.
The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 130.7 US cents per kg, down 0.6 cent. A firm yen on prospects for a tweak in Japan's central bank's policy also put pressure on rubber prices.
"There are multiple factors to drive down the prices, but the biggest factor is concerns that China's economy and demand may fall because of deepening trade spats," said Satoru Yoshida, a commodity analyst with Rakuten Securities.
Comments
Comments are closed.