Tokyo rubber plunges on demand concern
|
|
|
Tokyo rubber futures fell by nearly 7 per cent and the key Shanghai futures contract dropped by the daily 6 per cent limit on Monday as falls in oil prices and concerns over global credit market turmoil induced heavy selling. Yokohama Rubber Co may delay a planned output expansion in China by a few months, the president of Japan's third-largest tyre maker said, as it braces for a further slowdown in demand and potential supply glut.
The key Tokyo Commodity Exchange rubber contract for March delivery closed at ¥226.3 per kg, down by the daily ¥16 limit or 6.6 per cent below Friday's close. The March TOCOM contract was at the lowest for a benchmark since December 2006. Asian physical rubber prices fell sharply on Monday, reflecting falls in Tokyo and Shanghai futures prices. Traders said most buyers were on the sidelines hoping for prices to fall further.
|
|
|
|
Source : Business Line |
|
|
|
|
|
RecycleINme.com. All Rights Reserved
