Tokyo rubber falls, weak stocks weigh
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Tokyo rubber futures fell 3 per cent on Tuesday, extending declines into a second session as weakness in Tokyo shares kept intact investor concerns about demand for the industrial commodity.
The key Tokyo Commodity Exchange rubber contract for April delivery closed at ¥168.5 per kg, down ¥5.8 or 3.3 per cent from the previous close. On Monday it fell ¥0.4, trimming Friday's ¥3.4 rise.
"As long as stocks are down and other commodities are down, rubber is down as well. It doesn't seem easy for investor confidence to recover,'' said a manager at a Tokyo-based trading firm.
TOCOM rubber futures prices are sounding out a floor after hitting a three-year trough of ¥153.4 in late October, pressured by the global economic crisis and bleak news about the auto industry, but physical prices have been supported by the fundamental supply tightness.
China will increase the rebate on exports of some types of rubber, including tyres, effective Dec. 1, the Ministry of Finance said on Monday, in a move to help its producers.
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Source : Business Line |
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