Rubber was able to maintain its strength in the second day of trading on Tuesday (05/09/2017), boosted by reports of declining rubber stocks.
The price of rubber for delivery in February 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.31% or 0.70 points to 228.60 yen per kilogram (kg).
Previously, rubber prices opened stagnant at 227.90 yen per kg position, after trading on Monday (4/9) ended up 4.35%.
We Tan, marketing manager of Shanghai Reascent Industrial said the decline in rubber stocks in Qingdao still provides support for rubber prices.
As reported by Bloomberg, rubber reserves in Qingdao fell 10.2 percent to 203,300 tons per September 1, 2017. Meanwhile, natural rubber reserves fell 13 percent to 149,600 tons, a decline in the fifth week.
At the same time, supply levels in Thailand have not fully recovered due to rain in some areas. The effects of continuous rain can inhibit rubber tapping activity.
Rubber is able to remain strong even as the performance of the yen appreciates amid continuing geopolitical tensions.
The yen today tracked up 0.28% or 0.31 points to 109.41 per dollar at 14.24 pm, after Monday (4/9) ended up appreciating 0.50% at 109.72.
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