The movement of rubber prices on the Tokyo commodity exchanges continued to rise in the third consecutive day on Tuesday (31/7/2018), in line with the weakening of the yen.
The price of rubber for January delivery in 2019, the most-active contract on the Tokyo Commodity Exchange (Tocom), today ended up 0.47% or 0.80 points at position 170.40.
The main raw material price of the tire continued its gains with the opening edged up 0.06% or 0.10 points at 169.70 this morning, after ending up 0.95% or 1.60 points at 169.60 yen per kg position Monday (30/7).
Meanwhile, today's yen exchange rate was down 0.10% or 0.11 points to 111.17 per US dollar at 14.03 WIB, after opening slightly higher by 0.03% or 0.03 point at 111.03 .
As is known, the weakening yen gives fresh wind for rubber, which can lift the price of this commodity with the potential increase in demand from buyers.
On the other hand, rubber prices for September delivery in 2018 on the Shanghai Futures Exchange ended down 0.53% or 55 points at 10,305 yuan per ton, after being able to close up 1.12% at 10,360 on Monday.
According to Takaki Shigemoto, an analyst at research firm JSC in Tokyo, data showing a slowdown in China's economy raises concerns about the outlook for rubber demand.
As reported, China's manufacturing sector growth slowed in July due to burden of escalating trade tensions with the United States, bad weather, and reduced domestic demand.
According to National Bureau of Statistics (NBS) data, China's Purchasing Managers 'Index (PMI) fell 0.58% to 51.2 in July from the previous month, below economists' forecast of 51.3.
The gain was the lowest since February 2018, although it is still above the 50 threshold that indicates expansion.
Meanwhile, China's PMI non-manufacturing index, which takes into account the services and construction sectors, is at 54, or down from 55 in June.
"Earlier, rubber prices [on the Shanghai stock] rose on concerns that floods in northern Thailand could limit supply from the largest exporters," Shigemoto added.
Tuesday, July 31, 2018
Friday, July 6, 2018
NR Prices Up, Returns To Support Level 170
Rubber prices managed to rebound and ended up more than 1% in trading today, Friday (6/7/2018).
The price of rubber for delivery in December 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 1.12% or 1.90 points at 171.40 yen per kilogram (kg), snapping a four-day consecutive correction.
The main raw material price of the tire began to rebound when it opened in the green zone with a rise of 0.24% or 0.40 points at 169.90, after ending down 0.94% or 1.60 points at 169.50 yen per kg on Thursday trading (5/7).
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, the recovery in stock markets in the United States and Japan eased concerns that a trade war between the US and China could limit global growth.
On Thursday, the Dow Jones Industrial Average closed up 0.75 percent or 181.92 points at 24,356.74, the S & P 500 gained 0.86 percent or 23.39 points at 2,736.61, while the Nasdaq Composite index ended up 1.12% or 83.75 points at 7,786.43.
Following the strengthening of US stocks, Japan's Nikkei 225 index in trading today rebounded and closed up 1.12% at 21,788.14. The Topix ended up 0.92% at 1,691.54.
"[However] the limited [rubber] gain as the oil rally halts the speculation that the price of synthetic rubber will rise," added Saito, as quoted by Bloomberg.
Oil prices headed for its biggest weekly decline in more than a month following a surprise rise in the amount of US crude inventories weighing on sentiment, as trade war between US President Donald Trump and China heated up.
Meanwhile, the yen appreciated by 0.04% or 0.04 points to 110.60 per dollar at 13:58 pm, having ended down 0.14% or 0.15 points at 110.60 on Thursday (5/7).
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The price of rubber for delivery in December 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 1.12% or 1.90 points at 171.40 yen per kilogram (kg), snapping a four-day consecutive correction.
The main raw material price of the tire began to rebound when it opened in the green zone with a rise of 0.24% or 0.40 points at 169.90, after ending down 0.94% or 1.60 points at 169.50 yen per kg on Thursday trading (5/7).
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, the recovery in stock markets in the United States and Japan eased concerns that a trade war between the US and China could limit global growth.
On Thursday, the Dow Jones Industrial Average closed up 0.75 percent or 181.92 points at 24,356.74, the S & P 500 gained 0.86 percent or 23.39 points at 2,736.61, while the Nasdaq Composite index ended up 1.12% or 83.75 points at 7,786.43.
Following the strengthening of US stocks, Japan's Nikkei 225 index in trading today rebounded and closed up 1.12% at 21,788.14. The Topix ended up 0.92% at 1,691.54.
"[However] the limited [rubber] gain as the oil rally halts the speculation that the price of synthetic rubber will rise," added Saito, as quoted by Bloomberg.
Oil prices headed for its biggest weekly decline in more than a month following a surprise rise in the amount of US crude inventories weighing on sentiment, as trade war between US President Donald Trump and China heated up.
Meanwhile, the yen appreciated by 0.04% or 0.04 points to 110.60 per dollar at 13:58 pm, having ended down 0.14% or 0.15 points at 110.60 on Thursday (5/7).
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Thursday, July 5, 2018
Rubber Prices Drop Again, Bellow Level 170
Weakening rubber prices continued at once thrown from the 170 level at the end of trading today, Thursday (5/7/2018).
The price of rubber for December 2018 delivery, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.94% or 1.60 points at 169.50 yen per kilogram (kg).
In fact, the price of the main raw material of this tire was rebounded when it opened in the green zone with a 0.06% increase or 0.10 points at 171.20 this morning. In trading Wednesday (4/7), rubber ended down 0.70% or 1.20 points at 171,10 yen per kg position.
According to JSC research company analyst Takaki Shigemoto, concerns about rising tension trade have weighed on the rubber market. As is known, the policy of reciprocal import tariff between the United States (US) and China will enter a new phase this week.
The US government plans to impose tariffs on Chinese imports worth US $ 34 billion starting Friday (6/7/2018). The Chinese government has vowed to take revenge.
China's finance ministry later stated that China would not start a trade war with the United States (US) or be the first in launching import tariffs.
"Also, the weakening of currencies in Southeast Asia has also heightened speculation that rubber producers can encourage shipments," Shigemoto added, as quoted by Bloomberg.
Meanwhile, the yen exchange rate was observed to weaken 0.13% or 0.14 points to 110.63 position per US dollar at 14.25 WIB, after ending up 0.08% or 0.09 point at 110.49 level on Wednesday (4/7).
The price of rubber for December 2018 delivery, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.94% or 1.60 points at 169.50 yen per kilogram (kg).
In fact, the price of the main raw material of this tire was rebounded when it opened in the green zone with a 0.06% increase or 0.10 points at 171.20 this morning. In trading Wednesday (4/7), rubber ended down 0.70% or 1.20 points at 171,10 yen per kg position.
According to JSC research company analyst Takaki Shigemoto, concerns about rising tension trade have weighed on the rubber market. As is known, the policy of reciprocal import tariff between the United States (US) and China will enter a new phase this week.
The US government plans to impose tariffs on Chinese imports worth US $ 34 billion starting Friday (6/7/2018). The Chinese government has vowed to take revenge.
China's finance ministry later stated that China would not start a trade war with the United States (US) or be the first in launching import tariffs.
"Also, the weakening of currencies in Southeast Asia has also heightened speculation that rubber producers can encourage shipments," Shigemoto added, as quoted by Bloomberg.
Meanwhile, the yen exchange rate was observed to weaken 0.13% or 0.14 points to 110.63 position per US dollar at 14.25 WIB, after ending up 0.08% or 0.09 point at 110.49 level on Wednesday (4/7).
Wednesday, July 4, 2018
Fear of Trade - War, NR prices fall down
Rubber prices continued weakening at the end of trading the third day in a row on Wednesday (4/7/2018).
The price of rubber for December 2018 delivery, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.70% or 1.20 points at 171.10 yen per kilogram (kg).
The main raw material price weakening of the tire began as it opened down 0.06% or 0.10 points at 172.20 position, having ended 0.86% or 1.50 points at 172.30 yen per kg on Tuesday 3/7).
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, interest for the rubber market weighed on concerns that rising trade tensions between the United States and China will slow economic growth. "It will also weaken demand for rubber," he added, as quoted by Bloomberg.
Meanwhile, according to Hideshi Matsunaga, an analyst at brokerage firm Sunward Trading, fears that the US and China could impose a car tariff amid trade disputes also weighed on the burs. The policy of reciprocal import tariffs between the United States and China will enter a new phase this week.
The reason, starting Friday this week (6/7/2018), the two largest economies of magnitude in the world will begin to impose mutual tariffs for hundreds of different types of imported products, while marking a major escalation of the conflict.
In line with rubber, West Texas Intermediate (WTI) oil prices for August delivery fell 0.69% or 0.51 points to US $ 73.63 per barrel on the New York Mercantile Exchange at 14:53 pm.
Also weighing on rubber, the yen continued to appreciate 0.08% or 0.09 points to 110.49 per dollar at 15.03 pm, after ending up 0.28% or 0.31 points at 110.58 at trading on Tuesday (3/7).
The price of rubber for December 2018 delivery, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.70% or 1.20 points at 171.10 yen per kilogram (kg).
The main raw material price weakening of the tire began as it opened down 0.06% or 0.10 points at 172.20 position, having ended 0.86% or 1.50 points at 172.30 yen per kg on Tuesday 3/7).
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, interest for the rubber market weighed on concerns that rising trade tensions between the United States and China will slow economic growth. "It will also weaken demand for rubber," he added, as quoted by Bloomberg.
Meanwhile, according to Hideshi Matsunaga, an analyst at brokerage firm Sunward Trading, fears that the US and China could impose a car tariff amid trade disputes also weighed on the burs. The policy of reciprocal import tariffs between the United States and China will enter a new phase this week.
The reason, starting Friday this week (6/7/2018), the two largest economies of magnitude in the world will begin to impose mutual tariffs for hundreds of different types of imported products, while marking a major escalation of the conflict.
In line with rubber, West Texas Intermediate (WTI) oil prices for August delivery fell 0.69% or 0.51 points to US $ 73.63 per barrel on the New York Mercantile Exchange at 14:53 pm.
Also weighing on rubber, the yen continued to appreciate 0.08% or 0.09 points to 110.49 per dollar at 15.03 pm, after ending up 0.28% or 0.31 points at 110.58 at trading on Tuesday (3/7).
Tuesday, July 3, 2018
NR prices fall down as fear of Car Tariff
The weakening of rubber prices continued at the end of trading the second day in a row on Tuesday (3/7/2018).
The price of rubber for delivery in December 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.86% or 1.50 points at 172.30 yen per kilogram (kg).
The weakening of the main raw material prices of these tires began as it opened down 0.35% or 0.60 points at 173.20 position, having ended down 1.42% or 2.50 points at 173.80 level on Monday trading (2 / 7).
According to Hideshi Matsunaga, an analyst at brokerage firm Sunward Trading, the rubber market is under pressure that a slowdown in China's economy could weaken demand for rubber.
As is known, the China Bureau of Statistics (NBS) noted China's Purchasing Managers' Index (PMI) fell to 51.5 in June, below analyst expectations of 51.6, down from 51.9 in May.
The results are in line with recent data (credit growth, investment and retail sales) showing China's economic slowdown, as policymakers manage debt risk and heated up trade ties with the United States.
China's export demand index also contracted for the first time since February 2018, down 0.03% to 49.8 from the previous month.
"Concerns that the US and China could impose tariffs on cars amid trade disputes also weighed on the exchange," Matsunaga added, as quoted by Bloomberg.
The policy of reciprocal import tariffs between the United States and China will enter a new phase this week.
The reason, starting this Friday (6/7/2018), two countries with the largest economic power in the world will begin to impose mutual tariffs for hundreds of different types of imported products, as well as marking a major escalation of conflict.
Tariff disputes between President Donald Trump and China threatened the cancellation of years of lobbying by automakers and unnerved a number of European luxury brands because of the decisions made.
"Most clients wait. After the issue of trade war, many imported vehicles such as Mercedes-Benz or BMW, especially BMW X4, X5, and X6 made in the US are affected. We are informing clients to buy cars at the promised price before July 6th, but there is no guarantee thereafter, "said Liu Yuanyuan, a sales manager.
In contrast to rubber, West Texas Intermediate (WTI) oil prices for August delivery rose 0.99%, or 0.73 points, to settle at $ 74.67 a barrel on the New York Mercantile Exchange at 13:46 pm.
Meanwhile, the yen was down 0.12% or 0.13 points to 111.02 per US dollar at 13:56 pm, having ended down 0.13% or 0.14 points at 110.89 during trading on Monday (2/7).
The price of rubber for delivery in December 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.86% or 1.50 points at 172.30 yen per kilogram (kg).
The weakening of the main raw material prices of these tires began as it opened down 0.35% or 0.60 points at 173.20 position, having ended down 1.42% or 2.50 points at 173.80 level on Monday trading (2 / 7).
According to Hideshi Matsunaga, an analyst at brokerage firm Sunward Trading, the rubber market is under pressure that a slowdown in China's economy could weaken demand for rubber.
As is known, the China Bureau of Statistics (NBS) noted China's Purchasing Managers' Index (PMI) fell to 51.5 in June, below analyst expectations of 51.6, down from 51.9 in May.
The results are in line with recent data (credit growth, investment and retail sales) showing China's economic slowdown, as policymakers manage debt risk and heated up trade ties with the United States.
China's export demand index also contracted for the first time since February 2018, down 0.03% to 49.8 from the previous month.
"Concerns that the US and China could impose tariffs on cars amid trade disputes also weighed on the exchange," Matsunaga added, as quoted by Bloomberg.
The policy of reciprocal import tariffs between the United States and China will enter a new phase this week.
The reason, starting this Friday (6/7/2018), two countries with the largest economic power in the world will begin to impose mutual tariffs for hundreds of different types of imported products, as well as marking a major escalation of conflict.
Tariff disputes between President Donald Trump and China threatened the cancellation of years of lobbying by automakers and unnerved a number of European luxury brands because of the decisions made.
"Most clients wait. After the issue of trade war, many imported vehicles such as Mercedes-Benz or BMW, especially BMW X4, X5, and X6 made in the US are affected. We are informing clients to buy cars at the promised price before July 6th, but there is no guarantee thereafter, "said Liu Yuanyuan, a sales manager.
In contrast to rubber, West Texas Intermediate (WTI) oil prices for August delivery rose 0.99%, or 0.73 points, to settle at $ 74.67 a barrel on the New York Mercantile Exchange at 13:46 pm.
Meanwhile, the yen was down 0.12% or 0.13 points to 111.02 per US dollar at 13:56 pm, having ended down 0.13% or 0.14 points at 110.89 during trading on Monday (2/7).
Monday, July 2, 2018
China Rubber Stocks Rise, Rubber Price Drops Over 1%
Rubber prices dropped more than 1% in late trading today, Monday (2/7/2018).
The price of rubber for delivery in December 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.42% or 2.50 points at 173.80 yen per kilogram (kg).
In fact, rubber prices had resumed its gains as it opened in the green zone with a rise of 0.11% or 0.20 points at 176.50 position, after ending up 0.63% or 1.10 points at 176.30 level on Friday trading (29 / 6).
According to Masayo Kondo, head of research firm Commodity Intelligence, the burgeoning stock exchange of stocks in China continues to expand.
The amount of rubber stocks monitored by Shanghai exchange rose 1.3% to 505,069 tons last week, the ninth consecutive weekly rise.
"Sluggish manufacturing data also added to concerns that a slowdown in China's economy could curb demand for rubber," Kondo added, as quoted by Bloomberg.
The China Bureau of Statistics (NBS) noted China's Purchasing Managers' Index (PMI) slowed to 51.5 in June, below analyst expectations of 51.6, and 51.9 in May.
The results are in line with recent data (credit growth, investment and retail sales) showing China's economic slowdown, as policy makers manage debt risk and heated up trade ties with the United States.
China's export demand index also contracted for the first time since February 2018, down 0.03% to 49.8 from the previous month.
"Domestic demand is weakening and external demand is facing pressure from an escalation of trade disputes between China and the United States," said Wen Bin, Senior Economist at Minsheng Bank, Beijing, as quoted by Reuters.
In line with rubber, West Texas Intermediate (WTI) oil prices for August delivery in August 2018 fell 0.93%, or 0.69 points, to $ 73.46 a barrel on the New York Mercantile Exchange at 13:46 pm.
Also weighing on rubber, the yen appreciated 0.05% or 0.06 points to 110.69 per dollar at 13.56 GMT, after ending down 0.24% or 0.26 points at 110.75 in trading Friday (29/6).
As is known, the strengthening of the Japanese yen exchange rate against the US dollar makes the price of commodities traded in this currency to be relatively more expensive for overseas buyers. As a result, demand for these commodities has the potential to decline.
The price of rubber for delivery in December 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.42% or 2.50 points at 173.80 yen per kilogram (kg).
In fact, rubber prices had resumed its gains as it opened in the green zone with a rise of 0.11% or 0.20 points at 176.50 position, after ending up 0.63% or 1.10 points at 176.30 level on Friday trading (29 / 6).
According to Masayo Kondo, head of research firm Commodity Intelligence, the burgeoning stock exchange of stocks in China continues to expand.
The amount of rubber stocks monitored by Shanghai exchange rose 1.3% to 505,069 tons last week, the ninth consecutive weekly rise.
"Sluggish manufacturing data also added to concerns that a slowdown in China's economy could curb demand for rubber," Kondo added, as quoted by Bloomberg.
The China Bureau of Statistics (NBS) noted China's Purchasing Managers' Index (PMI) slowed to 51.5 in June, below analyst expectations of 51.6, and 51.9 in May.
The results are in line with recent data (credit growth, investment and retail sales) showing China's economic slowdown, as policy makers manage debt risk and heated up trade ties with the United States.
China's export demand index also contracted for the first time since February 2018, down 0.03% to 49.8 from the previous month.
"Domestic demand is weakening and external demand is facing pressure from an escalation of trade disputes between China and the United States," said Wen Bin, Senior Economist at Minsheng Bank, Beijing, as quoted by Reuters.
In line with rubber, West Texas Intermediate (WTI) oil prices for August delivery in August 2018 fell 0.93%, or 0.69 points, to $ 73.46 a barrel on the New York Mercantile Exchange at 13:46 pm.
Also weighing on rubber, the yen appreciated 0.05% or 0.06 points to 110.69 per dollar at 13.56 GMT, after ending down 0.24% or 0.26 points at 110.75 in trading Friday (29/6).
As is known, the strengthening of the Japanese yen exchange rate against the US dollar makes the price of commodities traded in this currency to be relatively more expensive for overseas buyers. As a result, demand for these commodities has the potential to decline.
Thursday, June 28, 2018
TOCOM extends gains into 3rd day on bargain-hunting
Benchmark Tokyo rubber futures extended gains into a third session on Thursday as investors continued to look for bargains and speculators unwound short positions, dealers said.
The Tokyo Commodity Exchange (TOCOM) rubber contract for December delivery finished 1.4 yen, or 0.8%, higher at 175.2 yen (US$1.59) per kg.
"Speculators who have built up short positions over the past month were rapidly unwinding their positions," a Tokyo-based dealer said, adding Wednesday's rally in oil prices also boosted risk appetite among investors.
The TOCOM futures, which set the tone for rubber prices in Southeast Asia, have lost about 15% from May's high by early this week.
Oil prices steadied on Thursday, with US crude pulling back from 3½-year highs, but supply remained tight with investors concerned about the prospect of a big fall in crude exports from Iran due to US sanctions.
"I expect the TOCOM to recover at around 185 yen level as the market has been oversold recently," the dealer said.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 25 yuan to finish at 10,455 yuan (US$1,578) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 138.5 US cents per kg, down 0.5 cent.
The Tokyo Commodity Exchange (TOCOM) rubber contract for December delivery finished 1.4 yen, or 0.8%, higher at 175.2 yen (US$1.59) per kg.
"Speculators who have built up short positions over the past month were rapidly unwinding their positions," a Tokyo-based dealer said, adding Wednesday's rally in oil prices also boosted risk appetite among investors.
The TOCOM futures, which set the tone for rubber prices in Southeast Asia, have lost about 15% from May's high by early this week.
Oil prices steadied on Thursday, with US crude pulling back from 3½-year highs, but supply remained tight with investors concerned about the prospect of a big fall in crude exports from Iran due to US sanctions.
"I expect the TOCOM to recover at around 185 yen level as the market has been oversold recently," the dealer said.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 25 yuan to finish at 10,455 yuan (US$1,578) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 138.5 US cents per kg, down 0.5 cent.
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