Tokyo rubber futures inch up on firm oil prices
ERJ staff report (TP)
Bangkok, Thailand – The benchmark Tokyo rubber futures edged higher on Tuesday (22 April) on the back of firm oil prices, but fears about falling demand in China, the world's biggest rubber consumer, still weighed on the market, reported Apornrath Phoonphongphiphat for Reuters.
The Tokyo Commodity Exchange rubber contract for September delivery rose 0.2 yen (€0.0014) to settle at 201.6 yen (€1.42) per kg.
"TOCOM prices got support from rising oil prices, but concerns about weak demand in China encouraged investors to liquidate contracts to stop losses," said a Bangkok-based dealer.
Brent futures held near a six-week high of more than $110 (€79.4) a barrel on Tuesday (22 April) on worries a pact to calm tensions in Ukraine was faltering, although expectations of a gain in US crude stockpiles weighed on prices.
China's economy expanded 7.4 percent between January and March, its slowest pace in 18 months, prompting authorities to act for the second time in as many weeks to shore up growth.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 45 yuan (€5.21) to finish at 14,005 yuan (€1,620) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 166.5 US cents (€1.21) per kg, up 1.9 cents (€0.013).