Stock in Shanghai Increases, Rubber Prices Decline

The price of rubber in the Tokyo and Shanghai compact exchanges ended lower in trading today, Monday (05/20/2019), amid continuing concerns surrounding the impact of the US (US) and Chinese trade wars.

Based on Bloomberg data, rubber prices for the most active contract in October 2019 at the Tokyo Commodity Exchange (Tocom) closed down 1.19 percent or 2.30 points at 190.50 yen per kg from the previous closing level of the trade.

In trading on Friday (5/17/2019), the October contract rubber price ended at 192.80 yen per kg after falling 0.16 percent or 0.30 points at 192.80 yen per kg.

In line with rubber prices in Tokyo, rubber prices for the most active contract in September 2019 on the Shanghai Futures Exchange closed down 30 points or 0.25 percent at 12,165 yuan per ton on Monday (5/20).

Reported by Bloomberg, the price of rubber futures contracts weakened after the amount of inventory in Shanghai climbed to its highest level in a month. The amount of rubber stock in Shanghai rose 0.4 percent to 431,384 tons during the week ended May 16.

At the same time, the market was plagued by continued concerns about the impact of the US-China trade war on global growth.

In a telephone call to US Secretary of State Mike Pompeo, Chin Foreign Minister Wang Yi said it was still possible to reach an agreement. But Wang Yi also stated that China must protect its interests.