Rubber slides
Benchmark Tokyo rubber futures slid nearly 2 percent on Tuesday, surrendering gains from the previous day, as investors unwound long positions after slack factory activity data reinforced concerns over the state of Chinese economy. The Tokyo Commodity Exchange (TOCOM) rubber contract for July delivery finished 3.0 yen, or 1.9 percent, lower at 157.0 yen ($1.30) per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery dropped 55 yuan to finish at 10,200 yuan ($1,550.29) per tonne despite a rise of over 2 percent in Chinese stock market. The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 108.8 US cents per kg, up 0.1 cent. "The rubber market is back in a bearish mode due to weak China data and as the Nikkei stock index runs out of steam despite the Bank of Japan's surprise easing," Toshitaka Tazawa, analyst at Fujitomi Co said.
- Tireworld Insight: Domestic tire makers eye overseas expansion
- Tireworld Insight: Price disparity severe between China's rubber exports and imports
- Tireworld Insight: China tire exports dependent on US market performance
- Tireworld Insight: SHFE rubber expected to move in tight range in short-term
- Tireworld Insight: Rubber futures to test near-term resistance at 15,000 yuan/tonne
- Tireworld Insight: China’s tire industry on track of rapid growth
