Benchmark Tokyo rubber futures, which set the tone for rubber prices in Southeast Asia, slid on Tuesday tracking Shanghai, as some investors took short positions amid high inventories of the tyre-making commodity. The Tokyo Commodity Exchange (TOCOM) rubber contract for October delivery finished 4.2 yen lower at 188.1 yen per kg, pressured by declining Shanghai futures.
"Some money shorted the commodity and pushed down the prices in Shanghai," said Tang Xiaonan, analyst with JLC Network Technology Co., Ltd. The most-active rubber contract on the Shanghai futures exchange for September delivery fell 230 yuan to finish at 11,440 yuan per tonne. "On the fundamentals, inventories in Shanghai are still quite high while demand is stable. Rubber is expected to remain weak in May and June," Tang said. The front-month rubber contract on Singapore's SICOM exchange for June delivery last traded at 139.2 US cents per kg,down 1.4 cent.