TOKYO: Benchmark Tokyo rubber futures fell on Thursday, tracking declines in crude oil prices, as weak manufacturing data from China fed concerns about global growth.
The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for February delivery fell 6.1 yen, or 2.3 percent, to settle at 253.9 yen ($3.24) per kg. The contract fell to as low as 251.2, down 3.4 percent.
Brent and West Texas Intermediate (WTI) crude oil futures fell on Thursday after the data showed China's manufacturing activity continued to contract. Rubber prices took their cue from WTI, said a Tokyo-based rubber trader.
"The rubber market will continue to follow WTI or keep in the 250-yuan range as there is some support around that level, according to the charts," said a Tokyo-based rubber trader.
But with the weekend approaching, the rubber contract may test 250 as dealers sell long positions to avoid taking on too much risk, the trader added.
The most-active rubber contract on the Shanghai Futures Exchange for January delivery settled at 23,880 yuan ($3,800), down 655 yuan from the previous close of 24,535 yuan.
The front-month rubber contract on Singapore's SICOM exchange for October delivery last traded at 251 US cents per kg, up 0.6 cents.
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