Rubber may drop to lowest price since 2009
ERJ staff report (BC)
Tokyo – By October 2013, rubber may fall to its lowest price since 2009, according to Aya Takada of Bloomberg News.
According to company JSC Corp., says Takada, the 50-day moving average for the most active contract on the Tokyo Commodity Exchange declined below the so-called “cloud” level on Ichimoku charts this month, signalling that futures will extend losses for another six months.
Takaki Shigemoto, an analyst at the Tokyo-based company, said rubber may drop below 205.6 yen (€1.59) per kilogram, the three-year low reached in August 2012.
Rubber slumped into a bear market on 1 April as growing stockpiles in China signalled easing demand from the world’s largest consumer of tire feedstock.
The country’s economic growth slowed to 7.7 percent in the first quarter from 7.9 percent in Q4 2012. "I can’t see any technical signs for the trend to turn around," Shigemoto is reported as saying. "The market is also fundamentally weak as the low-production season in Thailand is ending, worsening oversupply."
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