Shanghai rubber edges down in volatile trading
Rubber futures traded on the Shanghai Futures Exchange (SHFE) ended in the negative territory amid volatile trading on Thursday (June 27, 2013) as fears over liquidity crunch continued to weigh on the market sentiment though the recent steep rise of money market rates were eased.
The most actively traded contract for September delivery ended at 17,050 yuan/metric ton, down 115 yuan or 0.67 percent from the previous settlement.
The People’s Bank of China, China’s central bank, once again suspended its routine open market operations on Thursday, a move aiming to improve the liquidity crunch. A net liquidity of 25 billion yuan has been injected into the market this week.
In view of the weak fundamentals, a bearish run of Shanghai rubber seemed inevitable for at least the short term.
(Edited by Olivia, olivia@tireworld.com.cn)
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