BEIJING: Benchmark Tokyo rubber futures rebounded on Wednesday, tracking Shanghai gains, but increasing supplies and weak demand continued to weigh on the market.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, recovered from a sharp fall on Tuesday, when renewed trade tension between China and the United States affected the market mood.
“The fundamentals remain weak but rubber prices had fallen too much that they needed some recovery,” said Li Dongling, senior analyst with First Futures.
“I don’t think the rise will be sustained in long term,” Li said.
The Tokyo Commodity Exchange rubber contract for November delivery finished 2.3 yen higher at 176.0 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 45 yuan to finish at 10,350 yuan per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for July delivery last traded at 133.5 US cents per kg, up 0.7 cent.
Tokyo and Shanghai rubber futures tumbled on Tuesday after Beijing and Washington exchanged trade tariff threats.
US president Donald Trump on Monday threatened to impose a 10% tariff on US$200 billion of Chinese goods, promoting a swift warning from Beijing of retaliation, as the trade conflict between the world’s two biggest economies quickly escalated.
Source : globalrubbermarkets.com