Current Location: Home > NEWS > Financial Market > Page

Tokyo rubber inches lower on Dec.4

Tokyo Commodity Exchange (TOCOM) futures inched lower on Tuesday, due to renewed fears over a broadening trade war after US President Donald Trump stunned markets by imposing tariffs on imports from Brazil and Argentina.

TOCOM's rubber contract for May delivery finished 0.3 yen lower at 189.0 yen ($1.74) per kg.

The most-active rubber contract on the Shanghai futures exchange for May delivery rose 75 yuan to finish at 12,745 yuan ($1,810.65) per tonne. China's new technically specified rubber (TSR) 20 futures contract was last up 135 yuan at 10,730 yuan per tonne.

“Rubber prices have rallied quite strongly over the past two months as they had been undervalued, but it looks that the market is running out of steam now," said Jiong Gu, an analyst at Yutaka Shoji Co.

“I expect investors to square their positions before Dec. 15 when an additional US tariff on Chinese imports set to take effect," Gu said.

The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 141.4 US cents per kg, up 0.6%.

US President Donald Trump ambushed Brazil and Argentina on Monday, announcing tariffs on US steel and aluminium imports from the two countries in a measure that shocked South American officials and left them scrambling for answers.

The United States is poised to impose an additional 15% tariff on about $156 billion of Chinese products on Dec. 15. Japan is preparing an economic stimulus package worth $120 billion to support fragile growth, two government officials with direct knowledge of the matter said on Tuesday, and complicating government efforts to fix public finances.

Business Recorder