The movement of rubber prices ended in the red zone on the second day of consecutive trading on Friday (22/12/2017), amid concerns over abundant supply.
The price of rubber for delivery in May 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.45% or 3 points at 203.40 yen per kilogram (kg).
Earlier, the May contract rubber price opened with a 0.10% rise or 0.20 point at 206.60, after trading on Thursday (21/12/2017) ended down 0.72% or 1.50 points at 206.40 position .
"The abundance of supply from Thailand will keep pressing the rubber market," said Kazuhiko Saito, a Fujitomi broker analyst in Tokyo, as quoted by Bloomberg.
In its report, The Rubber Economist estimates that global natural rubber production will exceed consumption by 169,000 tonnes next year and by 150,000 tonnes by 2019.
Production in 2017 is expected to rise 6% to 13.2 million tonnes, while consumption rose 3.5% to 13.03 million tonnes. The increase in production in 2017 looks bigger than expected in Malaysia, India, and smaller-scale producer countries.
Meanwhile, global stocks are expected to rise to 3.4 million tonnes by the end of 2019.
On the other hand, the observed yen depreciated 0.03%, or 0.03 points, to 113.36 per dollar at 13.50 Western Indonesia time on Thursday after ending up 0.06% at 113, 33.
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