SHFE rubber slumps on China, Japan data

Rubber futures traded on the Shanghai Futures Exchange (SHFE) slumped as mush as 3% on Friday (March 1, 2013) asChina's February manufacturing activity weighs, and asJapanFebruary domestic auto sales fall 12.2% on year.

The most actively traded contract for September 2013 delivery ended at 23,965 yuan/metric ton, down 725 yuan or 2.94%.

Analysts say the downside momentum ofShanghairubber this week is driven primarily by technical factors after prices breached the key 25,000/kg level.

“The market looks bad. It is very difficult for prices to rebound sharply after falling through that level,” said a Singapore-based broker at a Japanese brokerage.

(Contributed by Olivia, olivia@tireworld.com.cn)