Tokyo rubber falls on weak demand

Print this page Posted on : 12-26-2008 by recycleinme.com

Tokyo, Dec. 25

Tokyo rubber futures slipped 1 per cent on Thursday as weak demand and falling crude oil prices continued to hurt market sentiment.

The key Tokyo Commodity Exchange rubber contract for June delivery ended down ¥0.8, or 0.6 per cent, at ¥128.5. The contract fell as low as ¥124.2 earlier in the day.

"The market had been slowly rebounding off a recent low as investors grew wary of pushing prices too low, but the upside is limited due to the deep slump in demand that has come with the global recession,'' said a Tokyo-based trader.

'To hover around ¥120'

"There is only so much suppliers can do to help support prices. As long as demand remains slack, the market will not turn around,'' the trader said, adding that the key futures contract was likely to hover around ¥120 for now.

Source : Business Line