Thursday, November 30, 2017
TOP NATURAL RUBBER PRODUCERS TO CURB EXPORTS NEXT MONTH
Asia's top rubber producers have agreed to cut exports of natural rubber, starting next month, the International Rubber Consortium (IRCo) said on Thursday, in a bid to address declining global prices.
The decision was announced following a Wednesday meeting of the International Tripartite Rubber Council (ITRC) - consisting of Thailand, Indonesia and Malaysia - in Thailand's northern capital of Chiang Mai to discuss concerns over falling prices despite a lower supply.
"The 3 ITRC member countries will restrict exports of natural rubber for a specific time frame with the objective of addressing the current declining trend on natural rubber prices," IRCo said in a statement on Thursday.
The statement said the scheme will start next month but did specify the volume of the export cuts.
Thailand, Indonesia, and Malaysia produce nearly 70 percent of the world's natural rubber
IRCO restrict export in DEC 2017
DETAIL: TOTAL REDUCE: 350,000 MTS
Thai 234,809 MTS
Indo 95,192 MTS
Malaysia: 20,000 MTS
Wednesday, November 29, 2017
Rubber Price Down 0.45%
Rubber prices moved lower on trading today, Thursday (30/11/2017).
The price of rubber for delivery in May 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), fell 0.45% or 0.90 points to 198.60 yen per kilogram (kg) at 10:58 pm.
Earlier, the May rubber futures contract opened 0.20% lower at 199.10 level after yesterday's trading on Wednesday (11/29/2017), rubber prices closed up 1.79% to 199.50 yen per kg.
Gu Jiong, analyst of Yutaka Shoji, said that the weakening of rubber price was influenced by the weakening of crude oil price yesterday.
Reported by Bloomberg, the price of crude oil on Wednesday (29.11) depressed following doubts about the planned extension of supply-cutting efforts among the world's largest oil exporters.
The West Texas Intermediate (WTI) oil price for January delivery settled down 1.2% at $ 57.30 a barrel. Brent North Sea crude for January delivery settled down 50 cents at $ 63.11 a barrel on the London-based ICE Futures Europe exchange.
In today's trading, WTI was up 0.24 percent to $ 57.44 a barrel, while Brent oil gained 0.51 percent to $ 63.43 a barrel.
Meanwhile, today's yen exchange rate is down 0.08% or 0.09 points to the level of 112.02 yen per US dollar at 11:57 pm.
The price of rubber for delivery in May 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), fell 0.45% or 0.90 points to 198.60 yen per kilogram (kg) at 10:58 pm.
Earlier, the May rubber futures contract opened 0.20% lower at 199.10 level after yesterday's trading on Wednesday (11/29/2017), rubber prices closed up 1.79% to 199.50 yen per kg.
Gu Jiong, analyst of Yutaka Shoji, said that the weakening of rubber price was influenced by the weakening of crude oil price yesterday.
Reported by Bloomberg, the price of crude oil on Wednesday (29.11) depressed following doubts about the planned extension of supply-cutting efforts among the world's largest oil exporters.
The West Texas Intermediate (WTI) oil price for January delivery settled down 1.2% at $ 57.30 a barrel. Brent North Sea crude for January delivery settled down 50 cents at $ 63.11 a barrel on the London-based ICE Futures Europe exchange.
In today's trading, WTI was up 0.24 percent to $ 57.44 a barrel, while Brent oil gained 0.51 percent to $ 63.43 a barrel.
Meanwhile, today's yen exchange rate is down 0.08% or 0.09 points to the level of 112.02 yen per US dollar at 11:57 pm.
TOCOM ends at two-week high, buoyed by firm Shanghai
Benchmark Tokyo rubber futures ended at a two-week high on Wednesday, buoyed by bullish gains in Shanghai market.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, have recovered from near a five-month low hit earlier this month mainly on hopes of renewed demand from top consumer China.
The Tokyo Commodity Exchange rubber contract for May delivery finished 3.5 yen higher at 199.5 yen (US$1.79) per kg.
Crude rubber inventories at Japanese ports stood at 7,125 tonnes, as of Nov 10, up 13.8% from the last inventory date, data from the Rubber Trade Association of Japan showed on Wednesday.
Major producer Vietnam exported an estimated 1.20 million tonnes of rubber in the first 11 months of 2017, up 7.1% on year, and imported an estimated 503,000 tonnes, the government said on Wednesday.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 330 yuan to finish at 14,210 yuan (US$2,154.07) per tonne. Earlier in the session, it hit 14,295 yuan, the highest since Nov. 14.
The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 139.20 US cents per kg, down 0.4 cent.
Japan Stock Exchange Rebound, Rubber Price Rise Nearly 2 Percent
The price of rubber ended up nearly two percent in today's trading on Wednesday (29/11/2017), along with a rebound in the Japanese stock exchange.
The price of rubber for delivery in May 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), ended up 1.79% at 199.50 yen per kilogram (kg).
Earlier, the May contract rubber price opened with a 0.05% rise at 196.10 level, after on Tuesday (28/11) only ended stagnant at 199.50 position.
According to Kazuhiko Saito, an analyst at commodity brokerage firm Fujitomi, the Nikkei 225 Japan index rally helped boost rubber prices.
"However, the strengthening is limited by the weakening of crude oil prices," he said, as quoted by Bloomberg.
Both the Topix and Japan's Nikkei 225 indexes posted a rebound in trading today, even after news reports about the ballistic missile launch by North Korea.
The Topix index today opened in the green zone with a gain of 0.67% or 11.84 points at 1,783.91 and closed up 0.79% or 14.08 points at 1,786.15.
The Nikkei 225 index ended up 0.49% or 110.96 points at 22,597.20, after opening with a strengthening of 0.57% or 127.72 points at 22,613.96 position.
Investors seem to ignore the launch of intercontinental ballistic missiles this morning and tend to scrutinize the US tax cuts planned by President Donald Trump.
"North Korea has repeatedly launched missiles and its technology has grown, but that may not directly affect Japan's fundamentals unless it leads to a military conflict," said Kazuhiro Takahashi, an equity strategist at Daiwa Securities Co., as quoted by Bloomberg.
On the other hand, West Texas Intermediate (WTI) oil price for January delivery was down 0.36% or 0.21 points to US $ 57.78 per barrel at 14.10 WIB.
Meanwhile, the yen appreciated by 0.02%, or 0.02 point, to 111.46 per dollar at 13.42 pm, after dropping 0.35% on Tuesday (28/11) to 111.48 .
The price of rubber for delivery in May 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), ended up 1.79% at 199.50 yen per kilogram (kg).
Earlier, the May contract rubber price opened with a 0.05% rise at 196.10 level, after on Tuesday (28/11) only ended stagnant at 199.50 position.
According to Kazuhiko Saito, an analyst at commodity brokerage firm Fujitomi, the Nikkei 225 Japan index rally helped boost rubber prices.
"However, the strengthening is limited by the weakening of crude oil prices," he said, as quoted by Bloomberg.
Both the Topix and Japan's Nikkei 225 indexes posted a rebound in trading today, even after news reports about the ballistic missile launch by North Korea.
The Topix index today opened in the green zone with a gain of 0.67% or 11.84 points at 1,783.91 and closed up 0.79% or 14.08 points at 1,786.15.
The Nikkei 225 index ended up 0.49% or 110.96 points at 22,597.20, after opening with a strengthening of 0.57% or 127.72 points at 22,613.96 position.
Investors seem to ignore the launch of intercontinental ballistic missiles this morning and tend to scrutinize the US tax cuts planned by President Donald Trump.
"North Korea has repeatedly launched missiles and its technology has grown, but that may not directly affect Japan's fundamentals unless it leads to a military conflict," said Kazuhiro Takahashi, an equity strategist at Daiwa Securities Co., as quoted by Bloomberg.
On the other hand, West Texas Intermediate (WTI) oil price for January delivery was down 0.36% or 0.21 points to US $ 57.78 per barrel at 14.10 WIB.
Meanwhile, the yen appreciated by 0.02%, or 0.02 point, to 111.46 per dollar at 13.42 pm, after dropping 0.35% on Tuesday (28/11) to 111.48 .
Tuesday, November 28, 2017
Nikkei Index Strong, Rubber Soars Nearly 3%
Rubber prices moved higher in trading today, Wednesday (29/11/2017), following the strengthening of the NIkkei index and the weakening of the yen.
The price of rubber for delivery in May 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 1.48% or 2.90 points to 198.90 yen per kilogram (kg) at 11:28 pm.
Previously, the May rubber futures contract opened up 0.05% at 196.10 level after yesterday's trading on Tuesday (11/28/2017), rubber prices closed stagnant at 196 yen per kg.
Kazuhiko Saito, brokerage analyst of Commodities Fujitomi, said Japan's Nikkei 225 index rally and a weaker Japanese yen helped boost rubber prices.
"However, the strengthening is limited by the weakening of crude oil prices," he said, as quoted by Bloomberg.
Meanwhile, Sansern Kaewkarmnerd, a Thai government spokesman, said Prime Minister Prayuth Chan-Otha called on rubber authorities to increase domestic rubber consumption by 50%.
The Nikkei 225 index was up 0.28% or 62.76 points to 22,549.0 at 11.31 WIB after opening at 22,613.96.
Meanwhile, today's yen exchange rate strengthened only 0.01% to 111.47 yen per dollar at 11:49 pm, after having weakened to 111.66 yen per US dollar.
The price of rubber for delivery in May 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 1.48% or 2.90 points to 198.90 yen per kilogram (kg) at 11:28 pm.
Previously, the May rubber futures contract opened up 0.05% at 196.10 level after yesterday's trading on Tuesday (11/28/2017), rubber prices closed stagnant at 196 yen per kg.
Kazuhiko Saito, brokerage analyst of Commodities Fujitomi, said Japan's Nikkei 225 index rally and a weaker Japanese yen helped boost rubber prices.
"However, the strengthening is limited by the weakening of crude oil prices," he said, as quoted by Bloomberg.
Meanwhile, Sansern Kaewkarmnerd, a Thai government spokesman, said Prime Minister Prayuth Chan-Otha called on rubber authorities to increase domestic rubber consumption by 50%.
The Nikkei 225 index was up 0.28% or 62.76 points to 22,549.0 at 11.31 WIB after opening at 22,613.96.
Meanwhile, today's yen exchange rate strengthened only 0.01% to 111.47 yen per dollar at 11:49 pm, after having weakened to 111.66 yen per US dollar.
TOCOM erases early loss as Shanghai surges
Benchmark Tokyo rubber futures ended unchanged on Tuesday, erasing early losses as the new benchmark Shanghai futures contract traded near a two-week high, brokers said.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, traded mostly lower during the day as the yen held not far from a two-month high against the dollar.
A stronger yen makes Japanese currency-denominated assets more expensive when purchased in other currencies.
The Tokyo Commodity Exchange rubber contract for May delivery finished unchanged at 196 yen (US$1.76) per kg after touching a near two-week high of 197.2 yen on Monday.
The new most-active rubber contract on the Shanghai futures exchange for May delivery fell 105 yuan to finish at 13,980 yuan (US$2,118) per tonne after touching 14,045 yuan earlier, the highest since Nov. 15.
The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 139 US cents per kg, down 0.5 cent.
Monday, November 27, 2017
Oil Prices Depressed, Rubber Breaks Down This Morning
The price of rubber returned to weaken at the beginning of trading today, Tuesday (28/11/2017), in line with weakening of crude oil and the strengthening of the yen.
The price of rubber for delivery in May 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), fell 0.46% or 0.90 points to 195.10 yen per kilogram (kg) at 1031 GMT.
Earlier, the May contract price opened lower by 0.05% at 195.90. The price for April 2018 contract was down 0.21% to 193.80 yen per kg after yesterday's trading closed down 0.77%.
Kazunori Kokubo, managing director of Yutaka Shoji Singapore, said rubber prices were pressured by weakening of crude oil, triggering a sell-off of this commodity.
Japanese rubber inventories were up 8.3% at 6,262 tons. China's rubber stocks monitored by the Shanghai Futures Exchange slumped 37% to 322,408 tonnes per week, down from the highest level since 2003.
Meanwhile, West Texas Intermediate (WTI) oil prices fell 0.65% or 0.38 points to US $ 57.73 per barrel at 1043 WIB.
The weakening of oil is triggered by the start of the recovery of pipelines that drain the crude oil from the Alberta oil field to the US crude oil trading center
Reported by Reuters, TransCanada Corp. said that the Keystone crude pipeline will start at a low pressure today (28/11) after two weeks of leaking 5,000 barrels of crude oil in the South Dakota countryside.
The Calgary-based company said that the U.S Pipeline Hazardous Materials Safety Administration (PHMSA) is reviewing the repair and recovery plan.
On the other hand, today's yen exchange rate is observed to weaken 0.08% or 0.09 point to 111.18 position per US dollar at 10:54 pm.
The price of rubber for delivery in May 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), fell 0.46% or 0.90 points to 195.10 yen per kilogram (kg) at 1031 GMT.
Earlier, the May contract price opened lower by 0.05% at 195.90. The price for April 2018 contract was down 0.21% to 193.80 yen per kg after yesterday's trading closed down 0.77%.
Kazunori Kokubo, managing director of Yutaka Shoji Singapore, said rubber prices were pressured by weakening of crude oil, triggering a sell-off of this commodity.
Japanese rubber inventories were up 8.3% at 6,262 tons. China's rubber stocks monitored by the Shanghai Futures Exchange slumped 37% to 322,408 tonnes per week, down from the highest level since 2003.
Meanwhile, West Texas Intermediate (WTI) oil prices fell 0.65% or 0.38 points to US $ 57.73 per barrel at 1043 WIB.
The weakening of oil is triggered by the start of the recovery of pipelines that drain the crude oil from the Alberta oil field to the US crude oil trading center
Reported by Reuters, TransCanada Corp. said that the Keystone crude pipeline will start at a low pressure today (28/11) after two weeks of leaking 5,000 barrels of crude oil in the South Dakota countryside.
The Calgary-based company said that the U.S Pipeline Hazardous Materials Safety Administration (PHMSA) is reviewing the repair and recovery plan.
On the other hand, today's yen exchange rate is observed to weaken 0.08% or 0.09 point to 111.18 position per US dollar at 10:54 pm.
Crude Oil Weakens, Rubber Price Ends Rally
The rubber price rally ended today, Monday (27/11/2017), closing in the red zone as crude prices weaken.
The price of rubber for delivery in April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.77% or 1.50 points to 194.20 yen per kilogram (kg).
Previously, the movement of rubber prices opened stagnant at 195.70 position, after trading on Friday (24/11) closed 2.30% or 4.40 points higher at 195.70.
According to Kazuhiko Saito, an analyst at Fujitomi's commodity brokerage, the strength of the yen and the weakening of crude oil prices became a suppressive sentiment towards the rubber market.
"Despite this, the weakening level is limited by rubber stocks in Shanghai, China, which are declining sharply," Saito added, as quoted by Bloomberg.
China's rubber inventories monitored by the Shanghai Futures Exchange fell 37% to 322,408 tonnes last week, down from their highest level since at least 2003.
Meanwhile, the price of West Texas Intermediate (WTI) oil contracts in January 2018 fell 0.47% or 0.28 points to US $ 58.67 per barrel at 13.40 WIB, after opening stagnant at US $ 58.95. At the same time, Brent oil for January delivery fell 0.04 points to 63.82 per barrel.
Also weighing on the rubber, the yen appreciated 0.11 percent or 0.12 points to 111.41 per dollar at 13.49 pm, after Friday (24/11) ended down 0.29 percent at 111.53 .
The appreciation of the Japanese yen exchange rate against the US dollar makes commodity prices traded in these currencies become 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 April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.77% or 1.50 points to 194.20 yen per kilogram (kg).
Previously, the movement of rubber prices opened stagnant at 195.70 position, after trading on Friday (24/11) closed 2.30% or 4.40 points higher at 195.70.
According to Kazuhiko Saito, an analyst at Fujitomi's commodity brokerage, the strength of the yen and the weakening of crude oil prices became a suppressive sentiment towards the rubber market.
"Despite this, the weakening level is limited by rubber stocks in Shanghai, China, which are declining sharply," Saito added, as quoted by Bloomberg.
China's rubber inventories monitored by the Shanghai Futures Exchange fell 37% to 322,408 tonnes last week, down from their highest level since at least 2003.
Meanwhile, the price of West Texas Intermediate (WTI) oil contracts in January 2018 fell 0.47% or 0.28 points to US $ 58.67 per barrel at 13.40 WIB, after opening stagnant at US $ 58.95. At the same time, Brent oil for January delivery fell 0.04 points to 63.82 per barrel.
Also weighing on the rubber, the yen appreciated 0.11 percent or 0.12 points to 111.41 per dollar at 13.49 pm, after Friday (24/11) ended down 0.29 percent at 111.53 .
The appreciation of the Japanese yen exchange rate against the US dollar makes commodity prices traded in these currencies become relatively more expensive for overseas buyers. As a result, demand for these commodities has the potential to decline.
TOCOM ends lower on weak Shanghai futures
Benchmark Tokyo rubber futures ended lower on Monday, coming under pressure from a late tumble in Shanghai futures, brokers said.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, tend to follow Shanghai for direction.
The Tokyo Commodity Exchange rubber contract for new May delivery debuted at 196.9 yen on Monday, and finished down 0.9 yen at 196 yen per kg. Earlier in the session, it hit 197.2 yen, the highest since Nov. 15.
The most-active rubber contract on the Shanghai futures exchange for January delivery touched a near two-week high earlier, but tumbled before the close to finish at 13,410 yuan ($2,030) per tonne, down 390 yuan.
The front-month rubber contract on Singapore’s SICOM exchange for December delivery last traded at 138.60 US cents per kg, down 3.3 cents.
Sunday, November 26, 2017
Depressed Yen & Crude Oil, Rubber Prices Weaken 0.1% This Morning
Rubber prices moved lower in late trading today, Monday (27/11/2017), in line with the weakening of crude oil and the strengthening of the yen.
The price of rubber for delivery in April 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), fell 0.1 percent or 0.20 points to 195.50 yen per kilogram (kg) at 10:34 pm.
Previously, rubber prices opened stagnant after trading last weekend, Friday (24/11), closed up 2.30% or 4.40 points to 195.70 yen per kg.
According to Kazuhiko Saito, an analyst at Fujitomi's commodity brokerage, said the stronger yen and weaker crude oil prices became a suppressive sentiment in the rubber market.
"However, the weakening was capped by rubber stocks in Shanghai, China, which declined sharply," Saito added, as quoted by Bloomberg.
China's rubber stocks monitored by the Shanghai Futures Exchange slumped 37% to 322,408 tonnes per week, down from the highest level since 2003.
Meanwhile, the price of West Texas Intermediate (WTI) oil fell 0.42% or 0.25 point to US $ 58.70 per barrel at 10:34 pm, after opening stagnant at the level of US $ 58.95 per barrel.
Supporting the rubber, the yen today strengthened 0.13 percent or 0.14 points to 111.39 per dollar at 10:39 pm.
The price of rubber for delivery in April 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), fell 0.1 percent or 0.20 points to 195.50 yen per kilogram (kg) at 10:34 pm.
Previously, rubber prices opened stagnant after trading last weekend, Friday (24/11), closed up 2.30% or 4.40 points to 195.70 yen per kg.
According to Kazuhiko Saito, an analyst at Fujitomi's commodity brokerage, said the stronger yen and weaker crude oil prices became a suppressive sentiment in the rubber market.
"However, the weakening was capped by rubber stocks in Shanghai, China, which declined sharply," Saito added, as quoted by Bloomberg.
China's rubber stocks monitored by the Shanghai Futures Exchange slumped 37% to 322,408 tonnes per week, down from the highest level since 2003.
Meanwhile, the price of West Texas Intermediate (WTI) oil fell 0.42% or 0.25 point to US $ 58.70 per barrel at 10:34 pm, after opening stagnant at the level of US $ 58.95 per barrel.
Supporting the rubber, the yen today strengthened 0.13 percent or 0.14 points to 111.39 per dollar at 10:39 pm.
Friday, November 24, 2017
Crude Rally and Yen Weaker, Rubber Closes Stronger 2.3%
Rubber prices jumped more than two percent in late trading today, Friday (24/11/2017), in line with the crude oil rally.
The price of rubber for delivery in April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 2.30% or 4.40 points to 195.70 yen per kilogram (kg).
Previously, the movement of rubber prices opened with a rise of 0.31% or 0.60 points at 191.90, after the last trade before the national holiday on Wednesday (22/11) closed up 0.68% or 1.30 points at level 191 , 30.
According to Gu Jiong, an analyst at Yutaka Shoji, the strengthening of rubber prices on the Tocom bourse followed the movement in the Shanghai market.
"In addition, rising oil prices also helped sustain prices," added Shoji, as quoted by Bloomberg.
The price of rubber for January delivery on the Shanghai Futures Exchange gained 1.17 percent to 13,845 yuan a ton at 1339 GMT.
Meanwhile, the price of West Texas Intermediate (WTI) oil rose 0.69% or 0.40 points to US $ 58.42 per barrel at 13:44 pm, after trading on Wednesday (22/11) ended up 2.09% 58.02.
US crude oil prices continued to rally above $ 58 a barrel, after supply disruptions on the Keystone oil pipeline added to optimism over limited US supplies.
Supporting the rubber, the yen exchange rate today was down 0.26% or 0.29 points to 111.51 per dollar at 13.55 WIB, after Thursday's trade ended appreciating 0.01% at 111.21.
The price of rubber for delivery in April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 2.30% or 4.40 points to 195.70 yen per kilogram (kg).
Previously, the movement of rubber prices opened with a rise of 0.31% or 0.60 points at 191.90, after the last trade before the national holiday on Wednesday (22/11) closed up 0.68% or 1.30 points at level 191 , 30.
According to Gu Jiong, an analyst at Yutaka Shoji, the strengthening of rubber prices on the Tocom bourse followed the movement in the Shanghai market.
"In addition, rising oil prices also helped sustain prices," added Shoji, as quoted by Bloomberg.
The price of rubber for January delivery on the Shanghai Futures Exchange gained 1.17 percent to 13,845 yuan a ton at 1339 GMT.
Meanwhile, the price of West Texas Intermediate (WTI) oil rose 0.69% or 0.40 points to US $ 58.42 per barrel at 13:44 pm, after trading on Wednesday (22/11) ended up 2.09% 58.02.
US crude oil prices continued to rally above $ 58 a barrel, after supply disruptions on the Keystone oil pipeline added to optimism over limited US supplies.
Supporting the rubber, the yen exchange rate today was down 0.26% or 0.29 points to 111.51 per dollar at 13.55 WIB, after Thursday's trade ended appreciating 0.01% at 111.21.
Thursday, November 23, 2017
Oil WTI Rally, Rubber Price Rises Nearly 2%
Rubber prices rose nearly two percent in trading this morning, Friday (24/11/2017), in line with the crude oil rally.
The price of rubber for delivery in April 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 1.83 percent or 3.50 points to 194.80 yen per kilogram (kg) at 10:14 pm.
Previously, the movement of rubber prices opened with a rise of 0.31% or 0.60 points at 191.90, after the last trade before the national holiday on Wednesday (22/11) closed up 0.68% or 1.30 points at level 191 , 30.
According to Gu Jiong, an analyst at Yutaka Shoji, the strengthening of rubber prices on the Tocom bourse followed the movement in the Shanghai market.
"In addition, rising oil prices also helped sustain prices," added Shoji, as quoted by Bloomberg.
Rubber prices for January delivery on the Shanghai Futures Exchange reported up 0.2% to 13,755 yuan / ton.
Meanwhile, the price of West Texas Intermediate (WTI) oil rose 0.79% or 0.46 points to US $ 58.48 per barrel at 10:10 pm, after trading on Wednesday (22/11) ended up 2.09% 58.02.
US crude oil prices continued to rally above $ 58 a barrel, after supply disruptions on the Keystone oil pipeline added to optimism over limited US supplies.
Supporting the rubber, the yen today was down 0.12% or 0.13 points to 111.34 per dollar at 10:20 pm, after Thursday's trade ended 0.01% appreciation at 111.21.
The price of rubber for delivery in April 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 1.83 percent or 3.50 points to 194.80 yen per kilogram (kg) at 10:14 pm.
Previously, the movement of rubber prices opened with a rise of 0.31% or 0.60 points at 191.90, after the last trade before the national holiday on Wednesday (22/11) closed up 0.68% or 1.30 points at level 191 , 30.
According to Gu Jiong, an analyst at Yutaka Shoji, the strengthening of rubber prices on the Tocom bourse followed the movement in the Shanghai market.
"In addition, rising oil prices also helped sustain prices," added Shoji, as quoted by Bloomberg.
Rubber prices for January delivery on the Shanghai Futures Exchange reported up 0.2% to 13,755 yuan / ton.
Meanwhile, the price of West Texas Intermediate (WTI) oil rose 0.79% or 0.46 points to US $ 58.48 per barrel at 10:10 pm, after trading on Wednesday (22/11) ended up 2.09% 58.02.
US crude oil prices continued to rally above $ 58 a barrel, after supply disruptions on the Keystone oil pipeline added to optimism over limited US supplies.
Supporting the rubber, the yen today was down 0.12% or 0.13 points to 111.34 per dollar at 10:20 pm, after Thursday's trade ended 0.01% appreciation at 111.21.
China government warns northern cities to get serious in war on smog
Some northern Chinese cities failed to improve air quality by much last month, hitting the smog-prone region's overall results in a drive against pollution, the government said as it warned provincial officials to comply with stringent steps to clear the skies."Some cities did not improve air quality by much or even experienced some volatility, and in a way, they have dragged down the regional air quality level,"
Ministry of Environmental Protection (MEP) spokesperson, Liu Youbin, said at a regular briefing on Thursday.He did not identify the underperforming cities, but the comment comes amid concerns about the country's ability to reduce pollution in winter as it battles to avoid a repeat of the near-record levels of choking smog that enveloped key northern areas at the start of the year."There is no jesting in war. For those local officials who do not enforce the measures of the campaign effectively and could not improve air quality in time, we will hold them accountable," Liu added.
Data earlier this month showed only four of 28 northern Chinese cities met their air quality targets in October and air quality in 338 Chinese cities worsened in October, with levels of hazardous breathable particles, known as PM 2.5, up 5.6 percent on the year to an average of 38 micrograms per cubic metre.
Beijing is under huge pressure to meet politically crucial air quality targets and clear the skies of toxic smog that blankets the north of the country as homes turn up the heat which is powered by coal.Liu said overall air quality in the northern cities was improving compared with September.
Average PM 2.5 levels in the region dropped 15.8 percent in October from the month before, he said."It shows that our measures are working. As long as we are persistent, and diligently enforce existing measures, regional air quality will definitely improve," he said.Under the six-month campaign, 28 northern Chinese cities were ordered to thin traffic and cut industrial output.
Thousands of pollution sources including steel mills, coal-fired boilers, cement and ceramic plants, mines and building sites will be shut.These measures, part of Beijing's years-long time war on smog, have already roiled commodities market, fuelling worries that the tough inspections are hurting the already slowing economy.
Ministry of Environmental Protection (MEP) spokesperson, Liu Youbin, said at a regular briefing on Thursday.He did not identify the underperforming cities, but the comment comes amid concerns about the country's ability to reduce pollution in winter as it battles to avoid a repeat of the near-record levels of choking smog that enveloped key northern areas at the start of the year."There is no jesting in war. For those local officials who do not enforce the measures of the campaign effectively and could not improve air quality in time, we will hold them accountable," Liu added.
Data earlier this month showed only four of 28 northern Chinese cities met their air quality targets in October and air quality in 338 Chinese cities worsened in October, with levels of hazardous breathable particles, known as PM 2.5, up 5.6 percent on the year to an average of 38 micrograms per cubic metre.
Beijing is under huge pressure to meet politically crucial air quality targets and clear the skies of toxic smog that blankets the north of the country as homes turn up the heat which is powered by coal.Liu said overall air quality in the northern cities was improving compared with September.
Average PM 2.5 levels in the region dropped 15.8 percent in October from the month before, he said."It shows that our measures are working. As long as we are persistent, and diligently enforce existing measures, regional air quality will definitely improve," he said.Under the six-month campaign, 28 northern Chinese cities were ordered to thin traffic and cut industrial output.
Thousands of pollution sources including steel mills, coal-fired boilers, cement and ceramic plants, mines and building sites will be shut.These measures, part of Beijing's years-long time war on smog, have already roiled commodities market, fuelling worries that the tough inspections are hurting the already slowing economy.
China stocks tumble 3% on tighter lending rules; blue-chip index sees worst drop in 1½ years
Chinese equities saw heavy losses Thursday following new liquidity rules in the country and as global investors opted for safe-haven assets like sovereign bonds.
The Shenzhen composite closed down 2.9 percent and the tech-heavy Chinext composite lost 2.77 percent. The Shanghai composite dropped 2.2 percent with the technology, consumer non-cyclical and health-care sectors recording the steepest losses on the day.
Meanwhile, the blue-chip CSI 300 index was down by 2.9 percent by the end of the day, its biggest one-day fall in percentage terms since June 13, 2016, according to Reuters. Hong Kong's Hang Seng Index slipped by around 1 percent, a day after closing above the 30,000 mark for the first time in a decade.
Chinese firms have been under pressure since the government began tightening rules on lending. In particular, last week, banking regulators prepared a new set of rules to oversee the relationship between commercial lenders and their shareholders. Authorities have also introduced other measures, such as restrictions in loans to the shadow banking sector, and there is a general view that China is stepping up the deleveraging of its domestic economy.
Meanwhile, there were reports that the sharp fall was also due to firmer bond prices with the dollar also dropping overnight after the minutes from the Federal Reserve's latest policy meeting. Thursday was also a weak day for stock trading across the world, with U.S. indexes and the Japanese Nikkei all closed for the session.
"I think it's to be expected that you have periods of some weakness coming through," Richard Hodges, head of unconstrained fixed income at Nomura Asset Management, told CNBC Thursday.
Hodges is bullish on global growth, saying that global economic markets are suggesting that we are going through a world of expansion. He said he was seeing "very little evidence' that markets will actually start slowing.
"I think it's unwise to actually draw a conclusion from China and from the equity market given the performance which we have seen in global equity markets this year," he added.
Wednesday, November 22, 2017
Global NR production up 5% during Jan-Oct, 2017: ANRPC
World production of natural rubber (NR), including non-ANRPC (Association of Natural Rubber Producing Countries) member countries, has registered at 10.429 million tonnes during the first ten months of 2017 compared to 9.932 million tonnes reported during the same period in 2016, up by five percent. This is based on actual figures up to July 2017 and preliminary estimates for August 2017 to October 2017, stated the Natural Rubber Trends and Statistics report of ANRPC in October 2017.
World demand of NR recorded at 10.730 million tonnes, up 1.1% on a year-on-year basis. Both NR rubber prices in physical markets and futures markets have been volatile despite to an upward trend in the price of crude oil during the month of October 2017, the report said.
“Cambodia remains with the fastest production growth showing nation among ANRPC member countries. Though its growth has slowed down from 31.5% recorded on September 2017 to 29.8%. Sri Lanka has registered marginal increment, amounting to 2,000 tonnes of NR on a year-on-year basis. Some tappers in China and Sri Lanka were restrained from tapping activities due to more rains observed in the respective countries over the last two months,” ANRPC report further said.
The revised world outlook of supply is expected to increase by 605,000 tonnes, amounting to 12.869 million tonnes of NR during 2017. This revision also inclusive of the downward revision made to India’s production for the year 2017 by 15,000 tonnes.
Based on actual figures up to July 2017, preliminary estimates for August to October 2017 and anticipated figures for November 2017 onwards, the world output of NR is expected at 12.869 million tonnes, ANRPC said.
TOCOM climbs on stronger Shanghai, bargain-hunting
Benchmark Tokyo rubber futures climbed for a second day on Wednesday, backed by stronger Shanghai futures and as investors looked for bargains after an extended decline to a 5-month low that was hit the previous day.
Investors unwound short positions ahead of a national holiday on Thursday in Japan and supported by a rally in Tokyo stock market, dealers said.
Japan's Nikkei share average rose to a near two-week high on Wednesday, buoyed by gains in large-cap stocks, and financial companies as global growth hopes lifted the mood across world markets.
Asian shares joined a global rally to reach their highest in a decade on Wednesday as strong world growth and rising corporate profits lured hordes of investors into equities, while oil prices jumped closer to a recent 2½-year top.
The Tokyo Commodity Exchange (TOCOM) rubber contract for April delivery finished 1.3 yen higher at 191.3 yen (US$1.7) per kg. Early on Tuesday, it touched its lowest since June 23 at 187.8 yen.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 170 yuan to finish at 13,390 yuan (US$2,025) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 140.5 US cents per kg, up 1.4 cent.
Tuesday, November 21, 2017
TOCOM snaps 4-session losing streak after hitting 5-mth low
Benchmark Tokyo rubber futures rose on Tuesday, snapping a four-session losing streak, as investors looked for bargains after the market hit a five-month low earlier in the session, but gains were capped amid worries over higher stocks and slower economic growth in top buyer China.
The Tokyo Commodity Exchange (TOCOM) rubber contract for April delivery finished 0.5 yen higher at 190.0 yen (US$1.69) per kg, after falling to the lowest since June 23 of 187.8 yen earlier in the session.
"Investors bought back after the benchmark dove below 190 yen mark," said Satoru Yoshida, a commodity analyst with Rakuten Securities.
"If Chinese economic indicators show signs of an improvement in economy, the rubber markets may bottom out soon," he said.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 15 yuan to finish at 13,335 yuan per tonne.
The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 138.4 US cents per kg, down 0.8 cent.
Rubber inventories at TOCOM-approved warehouses increased to 4,815 tonnes as of Nov. 10, up 749 tonnes from 4,066 tonnes on Oct. 31, according to TOCOM data.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 2.2% from the prior Friday, the exchange said on Friday.
Monday, November 20, 2017
Rubber Price Continues to Decline on Fifth Day
Rubber prices continued to slide and slipped to 188 levels in the fifth straight day of trading on Tuesday (21/11/2017), amid concerns over higher stocks.
The price of rubber for delivery in April 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), fell 0.53 percent, or 1 point, to 188.50 yen per kilogram (kg) at 10:51 pm.
Previously, the rubber price opened with a gain of 0.21% at 189.90 position after on Monday (20/11) ended down 0.42% at position 189.50.
"High levels of inventories in Japan and China continue to push down rubber prices," said Felix Yeo, Director of RCMA Asia Pte., As quoted by Bloomberg.
The total rubber stocks monitored by the Shanghai Futures Exchange rose 2.2% to 510,356 tonnes over the week ended Nov. 16, an increase for the 23rd consecutive week.
Meanwhile, Japan's crude rubber inventories increased 9.1% to 5,784 tonnes in 10 days to 20 October.
In addition to high stocks, added Yeo, the strengthening performance of the yen currency also suppress the rubber.
The yen today was observed to rise 0.09% or 0.10 points to 112.52 per US dollar at 10:59 pm after stagnating at 112.62.
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 April 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), fell 0.53 percent, or 1 point, to 188.50 yen per kilogram (kg) at 10:51 pm.
Previously, the rubber price opened with a gain of 0.21% at 189.90 position after on Monday (20/11) ended down 0.42% at position 189.50.
"High levels of inventories in Japan and China continue to push down rubber prices," said Felix Yeo, Director of RCMA Asia Pte., As quoted by Bloomberg.
The total rubber stocks monitored by the Shanghai Futures Exchange rose 2.2% to 510,356 tonnes over the week ended Nov. 16, an increase for the 23rd consecutive week.
Meanwhile, Japan's crude rubber inventories increased 9.1% to 5,784 tonnes in 10 days to 20 October.
In addition to high stocks, added Yeo, the strengthening performance of the yen currency also suppress the rubber.
The yen today was observed to rise 0.09% or 0.10 points to 112.52 per US dollar at 10:59 pm after stagnating at 112.62.
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.
TOCOM hits 5-mth low on worries of higher inventory
Benchmark Tokyo rubber futures fell on Monday for a fourth straight session, hitting a 5-month low, weighed down by concerns over rising inventories and softer demand from top buyer China.
The Tokyo Commodity Exchange (TOCOM) rubber contract for April delivery finished 0.8 yen, or 0.4%, lower at 189.5 yen (US$1.7) per kg, after touching its lowest since June 23 at 188 yen earlier in the session.
"The TOCOM started Monday trade higher on the back of gains in oil and metals prices last Friday, but it came under selling pressure amid worries about higher rubber stocks and weaker economy in China," said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
Rubber inventories at TOCOM-approved warehouses increased to 4,815 tonnes as of Nov 10, up 749 tonnes from 4,066 tonnes on Oct 31, according to TOCOM data.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 2.2% from the prior Friday, the exchange said on Friday.
"I expect the TOCOM to test the June's low of 178.8 yen as market sentiment is expected to stay bearish," Kikukawa said.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 70 yuan to finish at 13,385 yuan per tonne.
The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 138.8 US cents per kg, down 0.3 cent.
Thursday, November 16, 2017
Yen Stronger, Rubber Price Turns Weak Down This Morning
The price of rubber moves continued its weakening in trading this morning, Friday (17/11/2017) amid the strengthening Japanese yen.
The price of rubber for delivery in April 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), fell 0.31 percent or 0.60 points to 190.50 yen per kilogram (kg) at 10:57 pm.
Previously, the price of rubber opened after stagnam trading on Thursday (16/11), ended down 0.98% or 1.90 points to 191.10 yen per kg.
In early trade, rubber prices briefly rose 1.5% to 193.9 yen per kg as investors retained commodity sales.
"Commodities are buoyed by speculation that low prices make market participants reluctant to sell rubber commodities," said Takaki Shigemoto, a JSC analyst, as quoted by Bloomberg.
However, rubber prices turned weaker following pressure from the strengthening performance of the Japanese yen. The yen was up 0.47 percent or 0.53 points at 112.53 yen per dollar at 11.22 pm.
Rubber has also lost 3.6 percent so far this week, and is on track for its biggest weekly loss since Sept. 29. Since the beginning of 2017, rubber has declined 27%.
The price of rubber for delivery in April 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), fell 0.31 percent or 0.60 points to 190.50 yen per kilogram (kg) at 10:57 pm.
Previously, the price of rubber opened after stagnam trading on Thursday (16/11), ended down 0.98% or 1.90 points to 191.10 yen per kg.
In early trade, rubber prices briefly rose 1.5% to 193.9 yen per kg as investors retained commodity sales.
"Commodities are buoyed by speculation that low prices make market participants reluctant to sell rubber commodities," said Takaki Shigemoto, a JSC analyst, as quoted by Bloomberg.
However, rubber prices turned weaker following pressure from the strengthening performance of the Japanese yen. The yen was up 0.47 percent or 0.53 points at 112.53 yen per dollar at 11.22 pm.
Rubber has also lost 3.6 percent so far this week, and is on track for its biggest weekly loss since Sept. 29. Since the beginning of 2017, rubber has declined 27%.
INDONESIA ASKS OTHER EXPORTER COUNTRIES TO REDUCE SUPPLY
The Indonesian government is asked to actively invite rubber exporting countries to reduce supply in the international market, due to persistently low rubber prices in the last three years.
Chairman of the Association of Indonesian Rubber Industry Association of South Sumatra Province Alex K Eddy explained that production restrictions are the only way for the short term, because the current supply in the world market really 'flood'.
"Someone wants to be a leader, and Indonesia can take over this, that is how to make countries like Malaysia and Thailand and new players to sit together to solve this problem," said Alex, as quoted by Antara, Thursday (16/11) .
Alex rate, low rubber prices most impact on Indonesia. Because 90 percent of rubber production is produced by smallholders. In addition, the ratio of sap production per hectare is very low compared to Malaysia, Thailand and Vietnam. In Indonesia in one hectare only get 1 ton of sap, while in Vietnam and Thailand has penetrated 2 tons.
"Surely when the price falls as it is today, that is 1.4 dollars per kilogram makes it no problem for Thailand and Vietnam, while for Indonesian farmers it becomes very heavy, because it only gets about Rp700.000 per month," he said.
The three rubber producing countries incorporated in the International Tripartite Rubber Council (ITRC), namely Indonesia, Malaysia and Thailand, have agreed to reduce supply to export markets in the Export Tonnage Scheme Agreement (AETS).
However, this measure is deemed ineffective if new rubber-producing countries (Laos, Vietnam, Myanmar and Cambodia) that are not members of the ITRC do not commit similar commitments.
Meanwhile, South Sumatra's rubber production target of 1.3 million tons in 2018 is certain to miss this year as per November only reached 1 million tons.
This target is not achieved no other impact of the price weakening at the level of farmers so a lot of land is just ignored.
"In 2016 it will fall even more, because the production has not reached 1 million tons, only about 900 thousand tons," he said, adding that at the beginning of the year there was a price increase.
Currently the price of rubber in international trade is only about 1.4 dollars per kilogram, or it is still far from expectations to touch 2 dollars per kg. Worse, farm-gate prices range from Rp5,000 - Rp7,000 per kilogram.
See also: Holding Plantation Income Sales Rp48, 7 Trillion in 2018
Anwar, one of Mesuji Raya rubber farmers, Ogan Komering Ilir District of South Sumatera, said that the price of rubber latex from the beginning of the year from Rp7.000,00 to only Rp6,800.00 (dry 100 percent) and Rp5,600.00 wet with a drying period of two days or 75 percent dry).
"At present, it is difficult for farmers to keep farming because the price is falling, and if the calculated income per month, around Rp700 thousand, this is not enough to meet family needs," he said.
Chairman of the Association of Indonesian Rubber Industry Association of South Sumatra Province Alex K Eddy explained that production restrictions are the only way for the short term, because the current supply in the world market really 'flood'.
"Someone wants to be a leader, and Indonesia can take over this, that is how to make countries like Malaysia and Thailand and new players to sit together to solve this problem," said Alex, as quoted by Antara, Thursday (16/11) .
Alex rate, low rubber prices most impact on Indonesia. Because 90 percent of rubber production is produced by smallholders. In addition, the ratio of sap production per hectare is very low compared to Malaysia, Thailand and Vietnam. In Indonesia in one hectare only get 1 ton of sap, while in Vietnam and Thailand has penetrated 2 tons.
"Surely when the price falls as it is today, that is 1.4 dollars per kilogram makes it no problem for Thailand and Vietnam, while for Indonesian farmers it becomes very heavy, because it only gets about Rp700.000 per month," he said.
The three rubber producing countries incorporated in the International Tripartite Rubber Council (ITRC), namely Indonesia, Malaysia and Thailand, have agreed to reduce supply to export markets in the Export Tonnage Scheme Agreement (AETS).
However, this measure is deemed ineffective if new rubber-producing countries (Laos, Vietnam, Myanmar and Cambodia) that are not members of the ITRC do not commit similar commitments.
Meanwhile, South Sumatra's rubber production target of 1.3 million tons in 2018 is certain to miss this year as per November only reached 1 million tons.
This target is not achieved no other impact of the price weakening at the level of farmers so a lot of land is just ignored.
"In 2016 it will fall even more, because the production has not reached 1 million tons, only about 900 thousand tons," he said, adding that at the beginning of the year there was a price increase.
Currently the price of rubber in international trade is only about 1.4 dollars per kilogram, or it is still far from expectations to touch 2 dollars per kg. Worse, farm-gate prices range from Rp5,000 - Rp7,000 per kilogram.
See also: Holding Plantation Income Sales Rp48, 7 Trillion in 2018
Anwar, one of Mesuji Raya rubber farmers, Ogan Komering Ilir District of South Sumatera, said that the price of rubber latex from the beginning of the year from Rp7.000,00 to only Rp6,800.00 (dry 100 percent) and Rp5,600.00 wet with a drying period of two days or 75 percent dry).
"At present, it is difficult for farmers to keep farming because the price is falling, and if the calculated income per month, around Rp700 thousand, this is not enough to meet family needs," he said.
Prices of Rubber Down, Farmers and Industries Equally Struck
Rubber manufacturers in North Sumatra threatened to stop the operation, due to the drag supply of raw materials in the last month. Yet all this time, rubber manufacturers in this region only produce 50% of installed capacity of 800 thousand tons per year.
"Entrepreneurs are complaining about the depletion of raw material supply, which is only enough for 3-4 days," said Executive Secretary of Indonesian Rubber Association (Gapkindo) Sumut Edy Irwansyah in Medan.
Employers are worried that this will disrupt the fulfillment of rubber export contracts for the end of 2017 and early 2018.
Edy as quoted from Antara revealed, the difficulty of raw materials due to lack of supply from collecting merchants. Farmers are reluctant to tap rubber into the garden, because the price of rubber latex does not benefit them.
The price of rubber or bokar materials in North Sumatra is only around Rp 5,000 to Rp 7,000 per kilogram. The farmers rate a decent price for their rubber latex, at least Rp 10,000 per kg.
The price is considered farmers are too low so it can not cover the cost of the garden and the necessities of life. "Farmers choose not to tap the sap and switch professions like a construction worker."
He admitted, all this time to cover the shortage of supply from North Sumatra, entrepreneurs bring bokar from Aceh, Lampung, Kalimantan and Sulawesi. "Supply bokar from other regions to maintain the confidence of buyers from abroad and avoid fines," said Edy
"Entrepreneurs are complaining about the depletion of raw material supply, which is only enough for 3-4 days," said Executive Secretary of Indonesian Rubber Association (Gapkindo) Sumut Edy Irwansyah in Medan.
Employers are worried that this will disrupt the fulfillment of rubber export contracts for the end of 2017 and early 2018.
Edy as quoted from Antara revealed, the difficulty of raw materials due to lack of supply from collecting merchants. Farmers are reluctant to tap rubber into the garden, because the price of rubber latex does not benefit them.
The price of rubber or bokar materials in North Sumatra is only around Rp 5,000 to Rp 7,000 per kilogram. The farmers rate a decent price for their rubber latex, at least Rp 10,000 per kg.
The price is considered farmers are too low so it can not cover the cost of the garden and the necessities of life. "Farmers choose not to tap the sap and switch professions like a construction worker."
He admitted, all this time to cover the shortage of supply from North Sumatra, entrepreneurs bring bokar from Aceh, Lampung, Kalimantan and Sulawesi. "Supply bokar from other regions to maintain the confidence of buyers from abroad and avoid fines," said Edy
TOCOM hits near 5-month closing low on weaker Shanghai
Benchmark Tokyo rubber futures shed earlier gains to end lower on Thursday, closing at their lowest in nearly five months, as extended losses in Shanghai futures prompted fresh selling amid worries about oversupply and slowing economy in top buyer China.
"Investors have been unwinding long positions as their expectations for higher prices of industrial materials in China have faded," said a Tokyo-based dealer, who declined to be named.
London nickel and copper futures edged back towards multi-week lows on Thursday, reflecting investor worries over a recent spate of data that showed China's economy cooled in October.
The Tokyo Commodity Exchange (TOCOM) rubber contract for April delivery finished down 1.9 yen, or 1%, at 191.1 yen (US$1.69) per kg, the lowest intraday level since Oct 31, and lowest close since June 26.The most-active rubber contract on the Shanghai futures exchange for January delivery fell 280 yuan to finish at 13,270 yuan (US$2,000) per tonne, following the previous day's tumble by 890 yuan."The TOCOM benchmark may be supported at about 190 yen mark in a short term, but an overall oversupply condition with heavy inventories is expected to weigh on the market sentiment in a long term," the dealer said.The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 137.5 US cents per kg, down 2.3 cents.
Gapkindo: The Government Invites Other Countries to Reduce Supply
The Indonesian government should be more active in inviting rubber exporting countries to reduce supply in the international market since last three years the price has remained in the low range.
Chairman of the Association of Indonesian Rubber Producers of South Sumatera Province Alex K Eddy in Palembang on Thursday (16/11), said it is the only way for the short term because the current supply in the world market really 'flood'.
"Someone wants to be a leader, and Indonesia can take over this, that is how to get countries like Malaysia and Thailand and new players to sit together to solve this problem," Alex said.
According to him, in relation to the decline of export commodity prices, Indonesia is actually the most problematic because almost 90 percent are smallholders.
In addition, the ratio of sap production per hectare is very low compared to Malaysia, Thailand and Vietnam. In Indonesia in one hectare only get 1 ton of sap, while in Vietnam and Thailand has penetrated 2 tons.
"Obviously when the price falls as it is today, that is 1.4 dollars per kilogram makes it no problem for Thailand and Vietnam, while for Indonesian farmers it becomes very heavy, because it only gets about Rp700.000 per month," he said.
The three rubber producing countries incorporated in the International Tripartite Rubber Council (ITRC), namely Indonesia, Malaysia and Thailand, have agreed to reduce supply to export markets in the Export Tonnage Scheme Agreement (AETS).
However, this measure is considered less effective if new rubber-producing countries (Laos, Vietnam, Myanmar, and Cambodia) that are not members of the ITRC do not commit similar commitments.
Meanwhile, South Sumatra's rubber production target of 1.3 million tons in 2018 is certain to miss this year as per November only reached 1 million tons.
This target is not achieved no other impact of the price weakening at the level of farmers so a lot of land is just ignored.
"In 2016 it will fall even more, because the production has not reached 1 million tons, only about 900 thousand tons," he said, adding that at the beginning of the year there were price fixes.
Currently the price of rubber in international trade is only about 1.4 dollars per kilogram, or it is still far from expectations to touch 2 dollars per kg. Worse, farm-gate prices range from Rp5,000 - Rp7,000 per kilogram.
One of Anwar, a rubber farmer of Mesuji Raya, Ogan Komering Ilir, South Sumatra, said that the price of rubber gum fell since the beginning of the year from Rp7,000.00 to only Rp6,800.00 (dry 100 percent) and Rp5,600.00 ( still wet with a drying period of two days or 75 percent dry).
"Currently it is difficult, the land is much left to the farmers because the price fell.With the calculated income per month, around Rp700 thousand, of course this is not enough to meet the needs of families," he said
Chairman of the Association of Indonesian Rubber Producers of South Sumatera Province Alex K Eddy in Palembang on Thursday (16/11), said it is the only way for the short term because the current supply in the world market really 'flood'.
"Someone wants to be a leader, and Indonesia can take over this, that is how to get countries like Malaysia and Thailand and new players to sit together to solve this problem," Alex said.
According to him, in relation to the decline of export commodity prices, Indonesia is actually the most problematic because almost 90 percent are smallholders.
In addition, the ratio of sap production per hectare is very low compared to Malaysia, Thailand and Vietnam. In Indonesia in one hectare only get 1 ton of sap, while in Vietnam and Thailand has penetrated 2 tons.
"Obviously when the price falls as it is today, that is 1.4 dollars per kilogram makes it no problem for Thailand and Vietnam, while for Indonesian farmers it becomes very heavy, because it only gets about Rp700.000 per month," he said.
The three rubber producing countries incorporated in the International Tripartite Rubber Council (ITRC), namely Indonesia, Malaysia and Thailand, have agreed to reduce supply to export markets in the Export Tonnage Scheme Agreement (AETS).
However, this measure is considered less effective if new rubber-producing countries (Laos, Vietnam, Myanmar, and Cambodia) that are not members of the ITRC do not commit similar commitments.
Meanwhile, South Sumatra's rubber production target of 1.3 million tons in 2018 is certain to miss this year as per November only reached 1 million tons.
This target is not achieved no other impact of the price weakening at the level of farmers so a lot of land is just ignored.
"In 2016 it will fall even more, because the production has not reached 1 million tons, only about 900 thousand tons," he said, adding that at the beginning of the year there were price fixes.
Currently the price of rubber in international trade is only about 1.4 dollars per kilogram, or it is still far from expectations to touch 2 dollars per kg. Worse, farm-gate prices range from Rp5,000 - Rp7,000 per kilogram.
One of Anwar, a rubber farmer of Mesuji Raya, Ogan Komering Ilir, South Sumatra, said that the price of rubber gum fell since the beginning of the year from Rp7,000.00 to only Rp6,800.00 (dry 100 percent) and Rp5,600.00 ( still wet with a drying period of two days or 75 percent dry).
"Currently it is difficult, the land is much left to the farmers because the price fell.With the calculated income per month, around Rp700 thousand, of course this is not enough to meet the needs of families," he said
Wednesday, November 15, 2017
China's Reserves Increase, Rubber Price Tumble
The price of rubber moves continued its weakening in trading this morning, Thursday (16/11/2017), amid rising Chinese rubber reserves.
The price of rubber for delivery in April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), fell 0.47% or 0.90 points to 192.10 yen per kilogram (kg) at 10:06 pm.
Previously, rubber prices opened down 0.36% or 0.70 points to 192.30 yen per kg after trading on Wednesday (15/11), ended down 4.46% or 9 points to 193 yen per kg.
Analysts from Yutaka Shoji, Gu Jiong said rubber prices were pressured by concerns over high rubber stocks in China.
"In addition, increased supply from rubber-producing countries also weighed on the market," he said, as quoted by Bloomberg.
Based on data from Shanghai Futures Exchange, China's rubber reserves increased 2.2% to 499,279 tons last week. This is an improvement in the 22nd week in a row.
Meanwhile, the Japanese yen exchange rate weakened 0.07% or 0.08 point to 112.96 yen per US dollar at 10:44 pm.
The price of rubber for delivery in April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), fell 0.47% or 0.90 points to 192.10 yen per kilogram (kg) at 10:06 pm.
Previously, rubber prices opened down 0.36% or 0.70 points to 192.30 yen per kg after trading on Wednesday (15/11), ended down 4.46% or 9 points to 193 yen per kg.
Analysts from Yutaka Shoji, Gu Jiong said rubber prices were pressured by concerns over high rubber stocks in China.
"In addition, increased supply from rubber-producing countries also weighed on the market," he said, as quoted by Bloomberg.
Based on data from Shanghai Futures Exchange, China's rubber reserves increased 2.2% to 499,279 tons last week. This is an improvement in the 22nd week in a row.
Meanwhile, the Japanese yen exchange rate weakened 0.07% or 0.08 point to 112.96 yen per US dollar at 10:44 pm.
Gapkindo: rubber stock at North Sumatra Factory is running low
Rubber manufacturers in North Sumatra threatened to stop operating because of the supply of raw materials thinned in the last month.
"The entrepreneurs are increasingly complaining about the depletion of raw material supply," said Executive Secretary of the Rubber Association of Indonesian Rubber Company (Gapkindo) Sumut Edy Irwansyah in Medan on Wednesday.
Entrepreneurs are worried that the reduced supply will disrupt the fulfillment of rubber export contracts for the end of 2017 and early 2018.
Whereas before it, the operation of rubber manufacturers in North Sumatra only about 50 percent of the total installed capacity of approximately 800ribu tons.
According to him, the difficulty of raw materials occurs due to supply from collecting merchants continue to decrease following the farmer did not menderesnya because the price of rubber fell.
The supply is getting weaker as it is also the rainy season.
The price of rubber or bokar material in North Sumatra is only around Rp5,000 to Rp7,000 per kilogram.
The price is considered farmers are not in accordance with production costs or inadequate cost of living so that farmers choose not menyadao sap and switch professions such as construction workers and manufacturers.
"Farmers claim that the rubber will only be able to support them if the price is at least Rp10,000 per kg," said Edy.
He acknowledged, falling prices at farmer level bokar influenced the selling price down in the international market.
SIR20 selling price in October 2017 for example live 1.43 US dollars per kg than in January 2017 which had reached 2.11 US dollars per kg.
"If prices continue to fall, it is feared that the supply will be even less and the rubber manufacturers will not be able to operate or even close," he said.
He admitted, all this time to cover the shortage of supply from North Sumatra, entrepreneurs bring bokar from Aceh, Lampung, Kalimantan and Sulawesi.
"Supply bokar from other regions to maintain the confidence of buyers from abroad and avoid fines," said Edy.
Rubber farmers in Labuhanbatu, Sumut, K Siregar claimed to have more than one year not to take care of rubber garden and turned into a driver of urban transportation and intercity.
"Where else can rely on rubber for living expenses if the price of rubber is only around Rp 5,000 per kg," he said.
Previously, he said, the benchmark price of rubber is one kilogram of rubber equal to two kilograms of rice.
"Now one kilogram of rice wrote at most Rp8,000 per kg," he said.
"The entrepreneurs are increasingly complaining about the depletion of raw material supply," said Executive Secretary of the Rubber Association of Indonesian Rubber Company (Gapkindo) Sumut Edy Irwansyah in Medan on Wednesday.
Entrepreneurs are worried that the reduced supply will disrupt the fulfillment of rubber export contracts for the end of 2017 and early 2018.
Whereas before it, the operation of rubber manufacturers in North Sumatra only about 50 percent of the total installed capacity of approximately 800ribu tons.
According to him, the difficulty of raw materials occurs due to supply from collecting merchants continue to decrease following the farmer did not menderesnya because the price of rubber fell.
The supply is getting weaker as it is also the rainy season.
The price of rubber or bokar material in North Sumatra is only around Rp5,000 to Rp7,000 per kilogram.
The price is considered farmers are not in accordance with production costs or inadequate cost of living so that farmers choose not menyadao sap and switch professions such as construction workers and manufacturers.
"Farmers claim that the rubber will only be able to support them if the price is at least Rp10,000 per kg," said Edy.
He acknowledged, falling prices at farmer level bokar influenced the selling price down in the international market.
SIR20 selling price in October 2017 for example live 1.43 US dollars per kg than in January 2017 which had reached 2.11 US dollars per kg.
"If prices continue to fall, it is feared that the supply will be even less and the rubber manufacturers will not be able to operate or even close," he said.
He admitted, all this time to cover the shortage of supply from North Sumatra, entrepreneurs bring bokar from Aceh, Lampung, Kalimantan and Sulawesi.
"Supply bokar from other regions to maintain the confidence of buyers from abroad and avoid fines," said Edy.
Rubber farmers in Labuhanbatu, Sumut, K Siregar claimed to have more than one year not to take care of rubber garden and turned into a driver of urban transportation and intercity.
"Where else can rely on rubber for living expenses if the price of rubber is only around Rp 5,000 per kg," he said.
Previously, he said, the benchmark price of rubber is one kilogram of rubber equal to two kilograms of rice.
"Now one kilogram of rice wrote at most Rp8,000 per kg," he said.
Asia SBR faces downward pressure from natural rubber, BD slump
Styrene butadiene rubber (SBR) prices in Asia are facing downward pressure in the near term from continued price weakness of rival product natural rubber (NR) and slumping values of feedstock butadiene (BD).
“It is a buyers’ market. Buyers are waiting for the SBR price to drop to around or below $1,500/tonne [CFR SE Asia] due to the weak NR and feedstock BD decline,” a trader said.
On 8 November, weekly SBR non-oil grade 1502 prices were assessed at $1,550-1,600/tonne CFR (cost and freight) southeast (SE) Asia, down by $150/tonne from early October, ICIS data showed.
NR prices, on the other hand, have continued to weaken this week. At midday, SMR 20 tyre grade NR stood at $1,388/tonne FOB (free on board) Malaysia at the Malaysian Rubber Exchange, down from the October average of $1,445/tonne FOB Malaysia.
NR and SBR are competing feedstocks in the production of tyres for the automotive industry and their prices tend to impact each other.
Sluggish demand from the downstream tyre makers is also weighing down on regional SBR prices.
“Tyre makers are adopting a cautious stance in light of the bearish sentiment and unwilling to build up their [SBR] inventories towards the fiscal year end,” a supplier said.
But major Asian SBR makers are unwilling to lower their SBR 1502 prices in spite of the recent plunge in BD prices, citing a margin squeeze.
On 10 November, spot BD prices were assessed at $975/tonne CFR NE Asia, down by 26% from 6 October, ICIS data showed.
“The feedstock BD cost was much higher in October, so we cannot drop the SBR 1502 price below $1,550/tonne CFR SE Asia or we will have no margins,” an Asian SBR maker said.
Myanmar rubber exports set to rise even as global prices take a beating
The price of rubber has fallen below its cost of production in major exporting countries. Yet, international demand for rubber produced in Myanmar has risen and insiders reckon things could remain upbeat for a while more.
“Myanmar rubber production will certainly increase on the back of rising international consumption and demand,” U Myo Thant, vice-chair at the Myanmar Rubber Planters and Producers Association (MRPPA), told The Myanmar Times.
The emerging trend represents a rare opportunity for Myanmar rubber producers to secure a foothold in the global market after lagging for years behind the world’s three major rubber producing countries: neighbouring Thailand as well as Malaysia and Indonesia.
Cyclical trade
The global rubber trade is an inherently cyclical one. Rubber tree saplings take 7-10 years to mature before the barks are removed to harvest natural rubber, a sticky, cream-like sap which is used to produce tyres and other goods.
The rubber produced is then processed and graded for quality. RSS3 rubber, for instance, is used as a component in tyre-making, while RSS5 is of cheaper and lower-grade quality. According to U Myo Thant, major rubber producers will soon be unable to supply sufficient quantities of rubber to tyre factories in China and other importing countries because rubber saplings have not reached the right age for harvesting.
Meanwhile, the International Tripartite Rubber Council (ITRC) comprising Thailand, Malaysia and Indonesia announced this month that it expects the ‘La Nina’ weather phenomenon to bring heavy rains to the region in the coming months which will affect production and supply of natural rubber to global markets.
The ITRC also concluded that current prices of rubber were “not reflective of market fundamentals.” Prices of Thai natural rubber have fallen from a peak of 179.25 baht ($5.41) per kg in 2011 to 47.75 baht on November 10, according to Reuters.
This is where Myanmar can step up to fill the gap and establish itself as a serious rubber exporter, U Myo Thant said. Currently, there are some 1.6 million acres of rubber plantation land in Myanmar, with 7 million trees now at the right age for harvesting natural rubber. Most of the country’s rubber trees are grown in Mon State as well as in the Taninthayi and Bago regions.
Quality issues
Demand already appears to be rising, with more than 700 tonnes exported to China and Thailand via Myanmar’s order gates in the second week of October compared to 460 tonnes in the first week of that month, according to government data. In September, Myanmar exported a total of 1,077 tonnes of rubber.
Around 80 percent of the rubber produced is exported to China with the remaining sold to Thailand, Malaysia and Japan as well as local factories.
Yet, rubber prices in Myanmar lag behind global spot prices when rising, but fall just as fast,” said U Mehn Htein Win, coordinator for the Mon State Development Advisory Group. For example, Myanmar rubber prices are currently K835-K840 per pound, while the Thai equivalent is K873 per pound.
This is due to inconsistent grades of rubber produced by local plantations. “Around 85pc of Myanmar rubber plantations is run by small-scale rubber farmers which causes the product form and quality to differ from each other. Myanmar rubber production is not standardised. We can’t guarantee consistency across one product form,” he said.
U Tun Htay , Mon State Minister for Agriculture, Livestock, Transportation and Communications told local media that 90pc of Myanmar rubber is low-quality, resulting in industry losses of K400 million a year. Because of the lack of quality and demand for Myanmar-produced rubber, producers are at a disadvantage and forced into becoming price takers of sell their products.
The other reason for poor quality is the lack of skilled manpower. “Our region is near Thailand, so most of our skilled workers go to Thailand to earn money,” U Aung Myo, chair of Dawei District Rubber Growers Association, told The Myanmar Times.
Chinese Demand
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The other problem is illegal exports. “Actually, 50pc of the exports to China are illegal. China buys every form of rubber type, including the cheap Khot Tone, Khot Hmout , Ahtu Pya rubber. They state the price they want for the low-grade rubber and transport the rubber to their factories for tyre production and value-add,” said U Mehn Htein Win.
He added that seven of the nine foreign robber factories in Mudon, Mon State, are also Chinese rubber factories.
But things could change for the better from now on. Besides China, Japan has also expressed interest in buying Myanmar rubber by cooperating with the MRPPA. The government is also supporting rubber as a national strategic crop, said U Win Thu, director from Myanmar Trade Promotion from the Ministry of Commerce. It is now also building a rubber laboratory in Yangon to raise the quality of local rubber.
Meanwhile, a K2 billion factory producing high-quality rubber near Thabya Village in Dawei township in Thaninthayi region is expected to begin operations in December. Plans to build two more factories are underway, The Myanmar Times understands.
Next year, Norway’s Nyor Company, together with Thai Southland Company and the Karen State Rubber Production Association, also intend to build a rubber refinery in Hpa-An Industrial Zone. Foreign participation in the project is expected to raise the quality of and add value to locally-produced rubber. This will raise international demand and reduce illegal exports.
On the whole, most producers are also expecting the rubber market to develop further and become more open.
TOCOM plunges 4% on weak Shanghai, China economy worries
Benchmark Tokyo rubber futures plunged more than 4% to a two-week low on Wednesday, following a decline in Shanghai futures, as tumbling base metal prices and concerns over weaker economy in top buyer China weighed on sentiment, dealers said.
China's economy cooled further last month, with industrial output, fixed asset investment and retail sales missing expectations as the government extended a crackdown on debt risks and factory pollution.
"A sharp drop in prices of base metals amid growing worries over Chinese economy triggered sell-off in Shanghai and Tokyo rubber markets," said Toshitaka Tazawa, analyst, Fujitomi Co.
Shanghai nickel and zinc tumbled alongside steel on Wednesday, extending losses from the previous session, as traders cut exposure to the sector following cooling industrial production growth and property sales in China.
The Tokyo Commodity Exchange (TOCOM) rubber contract for April delivery finished down 9.0 yen, or 4.5%, at 193.0 yen (US$1.71) per kg. Earlier in the session, it hit 192.1 yen, its lowest since Oct. 31.
The most-active rubber contract on the Shanghai futures exchange for January delivery tumbled 890 yuan to finish at 13,270 yuan (US$2,001) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 139.0 US cents per kg, down 4.9 cents.
Tuesday, November 14, 2017
Rubber Drops More Than 4%
Rubber prices slumped more than 4% in trading this morning, Wednesday (15/11/2017), depressed by several factors such as increasing reserves.
The price of rubber for delivery in April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), slumped 4.11% or 8.30 points to 193.70 yen per kilogram (kg) at 10:27 pm.
Previously, rubber prices opened up 0.05% or 0.1 point to 202.10 yen per kg after trading on Tuesday (14/11), ended up 0.05% to 202.
According to He Lihong, an analyst at SHZQ Futures, the weakening of rubber prices is triggered by the increase of rubber stocks, which are considered not to support the price of raw rubber rubber.
"In addition, downstream demand has also not shown an increase," he said, as quoted by Bloomberg.
He added that the decline in rubber prices is also in line with the weakening of basic metal prices because market participants are beginning to be more cautious.
Also pressing the price of rubber, Japan's yen exchange rate rose 0.20% or 0.23 points to 113.23 yen per US dollar at 10:35 pm.
The price of rubber for delivery in April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), slumped 4.11% or 8.30 points to 193.70 yen per kilogram (kg) at 10:27 pm.
Previously, rubber prices opened up 0.05% or 0.1 point to 202.10 yen per kg after trading on Tuesday (14/11), ended up 0.05% to 202.
According to He Lihong, an analyst at SHZQ Futures, the weakening of rubber prices is triggered by the increase of rubber stocks, which are considered not to support the price of raw rubber rubber.
"In addition, downstream demand has also not shown an increase," he said, as quoted by Bloomberg.
He added that the decline in rubber prices is also in line with the weakening of basic metal prices because market participants are beginning to be more cautious.
Also pressing the price of rubber, Japan's yen exchange rate rose 0.20% or 0.23 points to 113.23 yen per US dollar at 10:35 pm.
Yen Weaker, Rubber Prices Closed Strong on Second Day
Rubber prices managed to regain their momentum and ended higher on the second day of trading on Tuesday (14/11/2017), supported by optimism over the Chinese economy and the weakening performance of Japanese yen.
The price of rubber for delivery in April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.05% or 0.10 points to 202 yen per kilogram (kg).
Previously, the rubber price opened with a weakening of 0.20% or 0.40 points at position 201.50 after trading Monday (13/11) ended up rebounding 1.66% in position 201.90.
According to Gu Jiong, an analyst at Yutaka Shoji, rubber prices are buoyed by optimism over China's growing economic conditions, which could hike commodity prices including rubber.
"In addition, the weakening Japanese yen exchange rate also contributed to the price boost," said Gu, as quoted by Bloomberg.
China's economic pace has put a brake on the pace of factory data, investment and retail sales slows.
Based on data from the China Bureau of Statistics, industrial output rose 6.2% in October from a year earlier, lower than the 6.3% projection average and September data at 6.6%.
The retail sales jumped 10% from a year earlier, compared with forecasts for a 10.5% increase, and September's 10.3% gain. Fixed asset investment excluding rural households rose 7.3% in October, according to economists' forecasts.
China is said to have hinted at increasing the focus on the quality of economic expansion rather than its speed.
Supporting rubber prices, the yen continued to appreciate 0.03% or 0.03 points to 113.66 per dollar at 14.01 GMT, after Monday (13/11) ended down 0.09% at 113 , 63.
The price of rubber for delivery in April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.05% or 0.10 points to 202 yen per kilogram (kg).
Previously, the rubber price opened with a weakening of 0.20% or 0.40 points at position 201.50 after trading Monday (13/11) ended up rebounding 1.66% in position 201.90.
According to Gu Jiong, an analyst at Yutaka Shoji, rubber prices are buoyed by optimism over China's growing economic conditions, which could hike commodity prices including rubber.
"In addition, the weakening Japanese yen exchange rate also contributed to the price boost," said Gu, as quoted by Bloomberg.
China's economic pace has put a brake on the pace of factory data, investment and retail sales slows.
Based on data from the China Bureau of Statistics, industrial output rose 6.2% in October from a year earlier, lower than the 6.3% projection average and September data at 6.6%.
The retail sales jumped 10% from a year earlier, compared with forecasts for a 10.5% increase, and September's 10.3% gain. Fixed asset investment excluding rural households rose 7.3% in October, according to economists' forecasts.
China is said to have hinted at increasing the focus on the quality of economic expansion rather than its speed.
Supporting rubber prices, the yen continued to appreciate 0.03% or 0.03 points to 113.66 per dollar at 14.01 GMT, after Monday (13/11) ended down 0.09% at 113 , 63.
Monday, November 13, 2017
TOCOM ends up 1.7% on firm Shanghai market
Benchmark Tokyo rubber futures gained 1.7% on Monday, as a bullish Shanghai market improved investor sentiment, brokers said.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, tend to follow the Chinese market for direction.
The Tokyo Commodity Exchange rubber contract for April delivery finished 3.3 yen higher at 201.9 yen (US$1.78) per kg, after three straight sessions of declines.
The most active rubber contract on the Shanghai futures exchange for January delivery rose 295 yuan to finish at 14,155 yuan (US$2,130) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 143 U.S. cents per kg, up 0.7 cents.
Friday, November 10, 2017
TOCOM falls further on weak Shanghai market
Benchmark Tokyo rubber futures extended declines into a third session on Friday, as Shanghai futures stayed in the doldrums amid concerns about weak global demand in top consumer China, brokers said.
The Tokyo Commodity Exchange rubber contract for April delivery finished 4.5 yen lower at 198.6 yen (US$1.75) per kg. For the week, it fell 0.6% in its second straight weekly decline.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 75 yuan to finish at 13,855 yuan (US$2,086) per tonne.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 2.2% from last Friday, the exchange said on Friday.
The front-month rubber contract on Singapore's SICOM exchange for December delivery was unchanged at 141.70 US cents per kg.
Rubber farmers in Thailand, one of the world's biggest exporters of natural rubber, threatened on Friday to protest in the capital Bangkok if the military government does not help to prop up falling prices of the commodity.
The Tokyo Commodity Exchange rubber contract for April delivery finished 4.5 yen lower at 198.6 yen (US$1.75) per kg. For the week, it fell 0.6% in its second straight weekly decline.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 75 yuan to finish at 13,855 yuan (US$2,086) per tonne.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 2.2% from last Friday, the exchange said on Friday.
The front-month rubber contract on Singapore's SICOM exchange for December delivery was unchanged at 141.70 US cents per kg.
Rubber farmers in Thailand, one of the world's biggest exporters of natural rubber, threatened on Friday to protest in the capital Bangkok if the military government does not help to prop up falling prices of the commodity.
Thursday, November 9, 2017
TOCOM extends decline on weak Shanghai futures
Benchmark Tokyo rubber futures fell further on Thursday, weighed down by a decline in Shanghai futures and worries over sluggish global demand for rubber, brokers said.
TOCOM has also been hit by profit-taking, after touching a near one-month high of 207 yen on Tuesday.
The Tokyo Commodity Exchange rubber contract for April delivery finished 1.6 yen lower at 203.1 yen (US$1.79) per kg.
Crude rubber inventories at Japanese ports stood at 5,784 tonnes as of Oct 20, up 9.1% from the last inventory date, data from the Rubber Trade Association of Japan showed on Thursday.
Malaysia's industrial production in September expanded at a pace well below expectations, as growth slowed across all sub-sectors like petroleum, chemical, rubber and plastic products.
The most active rubber contract on the Shanghai Futures Exchange for January delivery fell 110 yuan to finish at 13,805 yuan (US$2,082) per tonne. The contract also touched a five-week high of 14,235 yuan on Monday.
The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 142.80 U.S. cents per kg, down 1 cent.
In market news, China has launched an antidumping probe into imports of a synthetic rubber called nitrile rubber from South Korea and Japan, the Ministry of Commerce said in a statement on Thursday.
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