Rubber prices failed to sustain its rebound and turned weaker by more than one percent on Monday morning, amid concerns over global rubber production.
The price of rubber for delivery in March 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), slid 1.12% or 2.20 points to 194.90 yen per kilogram (kg) at 10:22 pm.
Previously, the rubber price opened with a 0.05% rebound or 0.10 point at 197.20 level after trading on Friday (20/10) ended down 0.25% at 197.10 level.
According to Masayo Kondo, President of Commodity Intelligence research company, the weakening of rubber prices is affected by concerns about the growth of global rubber production.
"The growing supply raises concerns that global rubber production is growing at a faster pace than demand," Kondo said, as quoted by Bloomberg.
The amount of rubber stocks monitored by the Shanghai Futures Exchange reportedly rose 1% to 464,209 tons on Oct. 19, an increase for the 19th week.
The total rubber inventories in Qingdao increased 5.1% to 198,900 tonnes on October 13.
Rubber prices slump even as the yen's performance continues to weaken. The yen was down 0.22% or 0.25 points to 113.77 per US dollar at 10:28 pm, after Friday (20/10) ended down 0.87% at 113.52.
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