Tokyo rubber futures extended losses on Tuesday as equities and other commodities fell after a European Union summit aimed at solving the region's deteriorating debt crisis failed to restore financial market confidence. The most active Tokyo Commodity Exchange rubber contract for May delivery ended 2.8 yen a kg lower at 274.6 yen after hitting an intraday low at 272.2 yen. The contract plunged to a near 2-year low of around 248 yen in November.
"For this week, I think the concern is more on the European debt crisis. Rubber is more likely to track macroeconomics changes," said Ker Chung Yang, analyst at Phillip Futures in Singapore. In the physical market, Indonesia's SIR20 tyre grade changed hands at 154.50 US cents a pound ($3.41 a kg) for February shipment.
Offers were limited in Southeast Asia after a combination of dry and wet weather curbed supply in Thailand, Indonesia and Malaysia. The Indonesia Commodity & Derivative Exchange (ICDX) is planning to launch a physical rubber contract following talks with the International Tripartite Rubber Council, but time scale and details had yet to be decided.