The price of rubber was observed to decline almost 2% in trading this morning, Monday (14/08/2017), following the release of some Chinese economic data that is smaller than expected.
The price of rubber for January delivery in 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), slipped 1.82 percent or 3.90 points to 210.20 yen per kilogram (kg).
Previously, rubber prices opened with a 0.42% rise at 215 yen per kg position, after the last trading before the long weekend holiday on Thursday ended 10% lower at 214.10.
A number of China's economic data posted lower-than-expected results, owing to pressure by property restrictions, excessive lending, and industrial overcapacity.
As reported by Bloomberg, industrial production rose 6.4% in July 2017 compared with a year earlier. This figure is smaller than the average economic predictions of 7.1% and the achievement in June of 7.6%.
Meanwhile, retail sales rose 10.4% in July from a year earlier or lower than analysts' forecast of 10.8% and June's 11%.
The fixed asset investment in urban areas rose 8.3% during the first seven months of this year compared to the same period a year earlier. But this figure is smaller than the projection for an increase of 8.6%.
In addition to burdening rubber, the amount of rubber stocks monitored by Shanghai Futures Exchanges (SHFE) rose 1% to 387,264 tons last week.
"There is not much change in fundamentals and domestic rubber stocks are still rising," said He Lihong, an analyst at Shanghai CIFCO Futures, as quoted by Bloomberg.
On the other hand, today's yen exchange rate was down 0.21% or 0.23 points to 109.42 yen per US dollar at 1040 GMT.
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