Tokyo rubber falls on April 16
Tokyo Commodity Exchange (TOCOM) futures fell in light trade on Thursday, as more signs of weakening demand for automobiles and fears over a severe global recession weighed on market sentiment. TOCOM's rubber contract for September delivery finished 1.1 yen lower at 151.2 yen ($1.4) per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery slid 175 yuan to finish at 9,880 yuan ($1,396) per tonne. The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 109.9 US cents per kg, down 1.3%.
“Trade has been lacklustre in Tokyo recently, giving no clear sense of direction," said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co. “But given production disruptions and dwindling demand in automobile industry, the TOCOM could go down further," he said.
Toyota Motor Corp on Wednesday said it will cut production of finished vehicles by 40 percent in Japan in May as demand shrinks around the world because of the coronavirus pandemic.
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