Global natural rubber prices were pressured by news that China’s main buyers had stopped doing business and US-China trade tensions continued to burn.
Bloomberg data show that the price of natural rubber in March 2020 delivery on the Tokyo Commodity Exchange (Tocom) edged up 0.31% or 0.50 points to 161.00 yen per kilogram, at 16:40 WIB, after opening 0.25 down % or 0.40 points to 160.10 yen per kilogram.
However, on Friday (9/27), rubber prices closed down 2.89% or 4.80 points to 161.50 yen per kilogram.
According to a source, the price of agricultural commodities fell because the Chongqing General Trading Chemical stopped trading physical rubber. The company asks their rubber suppliers to end shipping all contracts that have not yet been completed.
Gu Jiong, analyst at broker Yutaka Shoji, said that the report had damaged market sentiment and added to concerns that manufacturing demand for rubber in the country would be weak this year.
“Rubber futures have room to fall further than the current level,” he said as quoted by Bloomberg, Monday (09/30/2019).
Meanwhile, according to Naohiro Niimura, a partner at the Market Risk Advisory in Tokyo, reports that the US could regulate Chinese listing on the stock exchange pushed equity prices lower, and pressured rubber prices.
Ho Kheng Ann, commodity manager at Phillip Futures, said rubber prices fell in line with weakening demand for tires. “High rubber stocks and an uncertain political situation have also limited the recovery in rubber prices,” he said.
He added the prospect of a continuing global economic slowdown also continued to depress rubber prices.
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