Benchmark Tokyo rubber futures ended down 2.5 percent on Monday, falling for the first time in three days, reflecting weak oil prices and continued weakness in Shanghai futures amid worries about Chinese economic growth. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, had risen for a second straight session on Friday on bargain-hunting after the contract hit a 2-1/2-month low on Thursday.
The Tokyo Commodity Exchange rubber contract for December delivery finished at 205.8 yen per kg, down 5.2 yen. The most-active rubber contract on the Shanghai futures exchange for September delivery fell 130 yuan to finish at 12,150 yuan per tonne. The contract on Thursday touched 10,975 yuan, the lowest for the most-traded rubber contract since at least August 2005. The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 141.60 US cents per kg, down 3.3 cents.
China's exports picked up unexpectedly in June but imports tumbled again, reinforcing expectations that the government may further loosen policy to lift the Chinese economy after a recent stock market rout. "China's data was weak," said a Tokyo-based dealer. "The fact that imports fell again is not a good sign." Imports of natural and synthetic rubber rose 18 percent to 330,000 tonnes in June from May, though imports in the first six months of the year were still down nearly 11 percent from a year ago, China's trade data showed. Oil prices fell by more than $1 a barrel on Monday as Iran and six world powers were close to nailing down a nuclear deal, but high Chinese crude import figures checked further losses.