The movement of rubber prices ended in the red zone in trading today, Thursday (21/12/2017), amid concerns about slow demand.
The price of rubber for delivery in May 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.72% or 1.50 points at 206.40 yen per kilogram (kg).
Earlier, the May contract rubber price opened with a 0.19% rise or 0.40 point at 208.30, after trading on Wednesday (20/12/2017) ended up 0.43% or 0.90 points at 207.90 .
According to Gu Jiong, commodity broker analyst Yutaka Shoji in Tokyo, rubber prices weighed on continued concerns over slow demand in China as well as inadequate details on export restrictions.
Reported by Bloomberg, The Rubber Economist in its report estimates that global natural rubber production will exceed consumption by 169,000 tons next year and by 150,000 tons by 2019.
Meanwhile, production in 2017 is expected to rise 6% to 13.2 million tons, while consumption rose 3.5% to 13.03 million tons.
On the other hand, the Rubber Authority of Thailand states that Thailand, Indonesia and Malaysia are planning to limit rubber exports to contain supply and adjust global demand.
The three countries will meet in the near future to discuss the details of the steps for the effort. The meeting, which was due to take place on December 15, was postponed due to a cabinet reshuffle in Thailand.
Supporting rubber, the yen appreciated a thin 0.02% or 0.02 point drop to 113.42 per dollar at 13:58 pm, after Wednesday ended 0.45 per cent at 113, 40.
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