The movement of rubber prices on the Tokyo commodity exchanges continued to rise in the third consecutive day on Tuesday (31/7/2018), in line with the weakening of the yen.
The price of rubber for January delivery in 2019, the most-active contract on the Tokyo Commodity Exchange (Tocom), today ended up 0.47% or 0.80 points at position 170.40.
The main raw material price of the tire continued its gains with the opening edged up 0.06% or 0.10 points at 169.70 this morning, after ending up 0.95% or 1.60 points at 169.60 yen per kg position Monday (30/7).
Meanwhile, today's yen exchange rate was down 0.10% or 0.11 points to 111.17 per US dollar at 14.03 WIB, after opening slightly higher by 0.03% or 0.03 point at 111.03 .
As is known, the weakening yen gives fresh wind for rubber, which can lift the price of this commodity with the potential increase in demand from buyers.
On the other hand, rubber prices for September delivery in 2018 on the Shanghai Futures Exchange ended down 0.53% or 55 points at 10,305 yuan per ton, after being able to close up 1.12% at 10,360 on Monday.
According to Takaki Shigemoto, an analyst at research firm JSC in Tokyo, data showing a slowdown in China's economy raises concerns about the outlook for rubber demand.
As reported, China's manufacturing sector growth slowed in July due to burden of escalating trade tensions with the United States, bad weather, and reduced domestic demand.
According to National Bureau of Statistics (NBS) data, China's Purchasing Managers 'Index (PMI) fell 0.58% to 51.2 in July from the previous month, below economists' forecast of 51.3.
The gain was the lowest since February 2018, although it is still above the 50 threshold that indicates expansion.
Meanwhile, China's PMI non-manufacturing index, which takes into account the services and construction sectors, is at 54, or down from 55 in June.
"Earlier, rubber prices [on the Shanghai stock] rose on concerns that floods in northern Thailand could limit supply from the largest exporters," Shigemoto added.
Tuesday, July 31, 2018
Friday, July 6, 2018
NR Prices Up, Returns To Support Level 170
Rubber prices managed to rebound and ended up more than 1% in trading today, Friday (6/7/2018).
The price of rubber for delivery in December 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 1.12% or 1.90 points at 171.40 yen per kilogram (kg), snapping a four-day consecutive correction.
The main raw material price of the tire began to rebound when it opened in the green zone with a rise of 0.24% or 0.40 points at 169.90, after ending down 0.94% or 1.60 points at 169.50 yen per kg on Thursday trading (5/7).
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, the recovery in stock markets in the United States and Japan eased concerns that a trade war between the US and China could limit global growth.
On Thursday, the Dow Jones Industrial Average closed up 0.75 percent or 181.92 points at 24,356.74, the S & P 500 gained 0.86 percent or 23.39 points at 2,736.61, while the Nasdaq Composite index ended up 1.12% or 83.75 points at 7,786.43.
Following the strengthening of US stocks, Japan's Nikkei 225 index in trading today rebounded and closed up 1.12% at 21,788.14. The Topix ended up 0.92% at 1,691.54.
"[However] the limited [rubber] gain as the oil rally halts the speculation that the price of synthetic rubber will rise," added Saito, as quoted by Bloomberg.
Oil prices headed for its biggest weekly decline in more than a month following a surprise rise in the amount of US crude inventories weighing on sentiment, as trade war between US President Donald Trump and China heated up.
Meanwhile, the yen appreciated by 0.04% or 0.04 points to 110.60 per dollar at 13:58 pm, having ended down 0.14% or 0.15 points at 110.60 on Thursday (5/7).
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The price of rubber for delivery in December 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 1.12% or 1.90 points at 171.40 yen per kilogram (kg), snapping a four-day consecutive correction.
The main raw material price of the tire began to rebound when it opened in the green zone with a rise of 0.24% or 0.40 points at 169.90, after ending down 0.94% or 1.60 points at 169.50 yen per kg on Thursday trading (5/7).
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, the recovery in stock markets in the United States and Japan eased concerns that a trade war between the US and China could limit global growth.
On Thursday, the Dow Jones Industrial Average closed up 0.75 percent or 181.92 points at 24,356.74, the S & P 500 gained 0.86 percent or 23.39 points at 2,736.61, while the Nasdaq Composite index ended up 1.12% or 83.75 points at 7,786.43.
Following the strengthening of US stocks, Japan's Nikkei 225 index in trading today rebounded and closed up 1.12% at 21,788.14. The Topix ended up 0.92% at 1,691.54.
"[However] the limited [rubber] gain as the oil rally halts the speculation that the price of synthetic rubber will rise," added Saito, as quoted by Bloomberg.
Oil prices headed for its biggest weekly decline in more than a month following a surprise rise in the amount of US crude inventories weighing on sentiment, as trade war between US President Donald Trump and China heated up.
Meanwhile, the yen appreciated by 0.04% or 0.04 points to 110.60 per dollar at 13:58 pm, having ended down 0.14% or 0.15 points at 110.60 on Thursday (5/7).
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Thursday, July 5, 2018
Rubber Prices Drop Again, Bellow Level 170
Weakening rubber prices continued at once thrown from the 170 level at the end of trading today, Thursday (5/7/2018).
The price of rubber for December 2018 delivery, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.94% or 1.60 points at 169.50 yen per kilogram (kg).
In fact, the price of the main raw material of this tire was rebounded when it opened in the green zone with a 0.06% increase or 0.10 points at 171.20 this morning. In trading Wednesday (4/7), rubber ended down 0.70% or 1.20 points at 171,10 yen per kg position.
According to JSC research company analyst Takaki Shigemoto, concerns about rising tension trade have weighed on the rubber market. As is known, the policy of reciprocal import tariff between the United States (US) and China will enter a new phase this week.
The US government plans to impose tariffs on Chinese imports worth US $ 34 billion starting Friday (6/7/2018). The Chinese government has vowed to take revenge.
China's finance ministry later stated that China would not start a trade war with the United States (US) or be the first in launching import tariffs.
"Also, the weakening of currencies in Southeast Asia has also heightened speculation that rubber producers can encourage shipments," Shigemoto added, as quoted by Bloomberg.
Meanwhile, the yen exchange rate was observed to weaken 0.13% or 0.14 points to 110.63 position per US dollar at 14.25 WIB, after ending up 0.08% or 0.09 point at 110.49 level on Wednesday (4/7).
The price of rubber for December 2018 delivery, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.94% or 1.60 points at 169.50 yen per kilogram (kg).
In fact, the price of the main raw material of this tire was rebounded when it opened in the green zone with a 0.06% increase or 0.10 points at 171.20 this morning. In trading Wednesday (4/7), rubber ended down 0.70% or 1.20 points at 171,10 yen per kg position.
According to JSC research company analyst Takaki Shigemoto, concerns about rising tension trade have weighed on the rubber market. As is known, the policy of reciprocal import tariff between the United States (US) and China will enter a new phase this week.
The US government plans to impose tariffs on Chinese imports worth US $ 34 billion starting Friday (6/7/2018). The Chinese government has vowed to take revenge.
China's finance ministry later stated that China would not start a trade war with the United States (US) or be the first in launching import tariffs.
"Also, the weakening of currencies in Southeast Asia has also heightened speculation that rubber producers can encourage shipments," Shigemoto added, as quoted by Bloomberg.
Meanwhile, the yen exchange rate was observed to weaken 0.13% or 0.14 points to 110.63 position per US dollar at 14.25 WIB, after ending up 0.08% or 0.09 point at 110.49 level on Wednesday (4/7).
Wednesday, July 4, 2018
Fear of Trade - War, NR prices fall down
Rubber prices continued weakening at the end of trading the third day in a row on Wednesday (4/7/2018).
The price of rubber for December 2018 delivery, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.70% or 1.20 points at 171.10 yen per kilogram (kg).
The main raw material price weakening of the tire began as it opened down 0.06% or 0.10 points at 172.20 position, having ended 0.86% or 1.50 points at 172.30 yen per kg on Tuesday 3/7).
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, interest for the rubber market weighed on concerns that rising trade tensions between the United States and China will slow economic growth. "It will also weaken demand for rubber," he added, as quoted by Bloomberg.
Meanwhile, according to Hideshi Matsunaga, an analyst at brokerage firm Sunward Trading, fears that the US and China could impose a car tariff amid trade disputes also weighed on the burs. The policy of reciprocal import tariffs between the United States and China will enter a new phase this week.
The reason, starting Friday this week (6/7/2018), the two largest economies of magnitude in the world will begin to impose mutual tariffs for hundreds of different types of imported products, while marking a major escalation of the conflict.
In line with rubber, West Texas Intermediate (WTI) oil prices for August delivery fell 0.69% or 0.51 points to US $ 73.63 per barrel on the New York Mercantile Exchange at 14:53 pm.
Also weighing on rubber, the yen continued to appreciate 0.08% or 0.09 points to 110.49 per dollar at 15.03 pm, after ending up 0.28% or 0.31 points at 110.58 at trading on Tuesday (3/7).
The price of rubber for December 2018 delivery, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.70% or 1.20 points at 171.10 yen per kilogram (kg).
The main raw material price weakening of the tire began as it opened down 0.06% or 0.10 points at 172.20 position, having ended 0.86% or 1.50 points at 172.30 yen per kg on Tuesday 3/7).
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, interest for the rubber market weighed on concerns that rising trade tensions between the United States and China will slow economic growth. "It will also weaken demand for rubber," he added, as quoted by Bloomberg.
Meanwhile, according to Hideshi Matsunaga, an analyst at brokerage firm Sunward Trading, fears that the US and China could impose a car tariff amid trade disputes also weighed on the burs. The policy of reciprocal import tariffs between the United States and China will enter a new phase this week.
The reason, starting Friday this week (6/7/2018), the two largest economies of magnitude in the world will begin to impose mutual tariffs for hundreds of different types of imported products, while marking a major escalation of the conflict.
In line with rubber, West Texas Intermediate (WTI) oil prices for August delivery fell 0.69% or 0.51 points to US $ 73.63 per barrel on the New York Mercantile Exchange at 14:53 pm.
Also weighing on rubber, the yen continued to appreciate 0.08% or 0.09 points to 110.49 per dollar at 15.03 pm, after ending up 0.28% or 0.31 points at 110.58 at trading on Tuesday (3/7).
Tuesday, July 3, 2018
NR prices fall down as fear of Car Tariff
The weakening of rubber prices continued at the end of trading the second day in a row on Tuesday (3/7/2018).
The price of rubber for delivery in December 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.86% or 1.50 points at 172.30 yen per kilogram (kg).
The weakening of the main raw material prices of these tires began as it opened down 0.35% or 0.60 points at 173.20 position, having ended down 1.42% or 2.50 points at 173.80 level on Monday trading (2 / 7).
According to Hideshi Matsunaga, an analyst at brokerage firm Sunward Trading, the rubber market is under pressure that a slowdown in China's economy could weaken demand for rubber.
As is known, the China Bureau of Statistics (NBS) noted China's Purchasing Managers' Index (PMI) fell to 51.5 in June, below analyst expectations of 51.6, down from 51.9 in May.
The results are in line with recent data (credit growth, investment and retail sales) showing China's economic slowdown, as policymakers manage debt risk and heated up trade ties with the United States.
China's export demand index also contracted for the first time since February 2018, down 0.03% to 49.8 from the previous month.
"Concerns that the US and China could impose tariffs on cars amid trade disputes also weighed on the exchange," Matsunaga added, as quoted by Bloomberg.
The policy of reciprocal import tariffs between the United States and China will enter a new phase this week.
The reason, starting this Friday (6/7/2018), two countries with the largest economic power in the world will begin to impose mutual tariffs for hundreds of different types of imported products, as well as marking a major escalation of conflict.
Tariff disputes between President Donald Trump and China threatened the cancellation of years of lobbying by automakers and unnerved a number of European luxury brands because of the decisions made.
"Most clients wait. After the issue of trade war, many imported vehicles such as Mercedes-Benz or BMW, especially BMW X4, X5, and X6 made in the US are affected. We are informing clients to buy cars at the promised price before July 6th, but there is no guarantee thereafter, "said Liu Yuanyuan, a sales manager.
In contrast to rubber, West Texas Intermediate (WTI) oil prices for August delivery rose 0.99%, or 0.73 points, to settle at $ 74.67 a barrel on the New York Mercantile Exchange at 13:46 pm.
Meanwhile, the yen was down 0.12% or 0.13 points to 111.02 per US dollar at 13:56 pm, having ended down 0.13% or 0.14 points at 110.89 during trading on Monday (2/7).
The price of rubber for delivery in December 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.86% or 1.50 points at 172.30 yen per kilogram (kg).
The weakening of the main raw material prices of these tires began as it opened down 0.35% or 0.60 points at 173.20 position, having ended down 1.42% or 2.50 points at 173.80 level on Monday trading (2 / 7).
According to Hideshi Matsunaga, an analyst at brokerage firm Sunward Trading, the rubber market is under pressure that a slowdown in China's economy could weaken demand for rubber.
As is known, the China Bureau of Statistics (NBS) noted China's Purchasing Managers' Index (PMI) fell to 51.5 in June, below analyst expectations of 51.6, down from 51.9 in May.
The results are in line with recent data (credit growth, investment and retail sales) showing China's economic slowdown, as policymakers manage debt risk and heated up trade ties with the United States.
China's export demand index also contracted for the first time since February 2018, down 0.03% to 49.8 from the previous month.
"Concerns that the US and China could impose tariffs on cars amid trade disputes also weighed on the exchange," Matsunaga added, as quoted by Bloomberg.
The policy of reciprocal import tariffs between the United States and China will enter a new phase this week.
The reason, starting this Friday (6/7/2018), two countries with the largest economic power in the world will begin to impose mutual tariffs for hundreds of different types of imported products, as well as marking a major escalation of conflict.
Tariff disputes between President Donald Trump and China threatened the cancellation of years of lobbying by automakers and unnerved a number of European luxury brands because of the decisions made.
"Most clients wait. After the issue of trade war, many imported vehicles such as Mercedes-Benz or BMW, especially BMW X4, X5, and X6 made in the US are affected. We are informing clients to buy cars at the promised price before July 6th, but there is no guarantee thereafter, "said Liu Yuanyuan, a sales manager.
In contrast to rubber, West Texas Intermediate (WTI) oil prices for August delivery rose 0.99%, or 0.73 points, to settle at $ 74.67 a barrel on the New York Mercantile Exchange at 13:46 pm.
Meanwhile, the yen was down 0.12% or 0.13 points to 111.02 per US dollar at 13:56 pm, having ended down 0.13% or 0.14 points at 110.89 during trading on Monday (2/7).
Monday, July 2, 2018
China Rubber Stocks Rise, Rubber Price Drops Over 1%
Rubber prices dropped more than 1% in late trading today, Monday (2/7/2018).
The price of rubber for delivery in December 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.42% or 2.50 points at 173.80 yen per kilogram (kg).
In fact, rubber prices had resumed its gains as it opened in the green zone with a rise of 0.11% or 0.20 points at 176.50 position, after ending up 0.63% or 1.10 points at 176.30 level on Friday trading (29 / 6).
According to Masayo Kondo, head of research firm Commodity Intelligence, the burgeoning stock exchange of stocks in China continues to expand.
The amount of rubber stocks monitored by Shanghai exchange rose 1.3% to 505,069 tons last week, the ninth consecutive weekly rise.
"Sluggish manufacturing data also added to concerns that a slowdown in China's economy could curb demand for rubber," Kondo added, as quoted by Bloomberg.
The China Bureau of Statistics (NBS) noted China's Purchasing Managers' Index (PMI) slowed to 51.5 in June, below analyst expectations of 51.6, and 51.9 in May.
The results are in line with recent data (credit growth, investment and retail sales) showing China's economic slowdown, as policy makers manage debt risk and heated up trade ties with the United States.
China's export demand index also contracted for the first time since February 2018, down 0.03% to 49.8 from the previous month.
"Domestic demand is weakening and external demand is facing pressure from an escalation of trade disputes between China and the United States," said Wen Bin, Senior Economist at Minsheng Bank, Beijing, as quoted by Reuters.
In line with rubber, West Texas Intermediate (WTI) oil prices for August delivery in August 2018 fell 0.93%, or 0.69 points, to $ 73.46 a barrel on the New York Mercantile Exchange at 13:46 pm.
Also weighing on rubber, the yen appreciated 0.05% or 0.06 points to 110.69 per dollar at 13.56 GMT, after ending down 0.24% or 0.26 points at 110.75 in trading Friday (29/6).
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 December 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.42% or 2.50 points at 173.80 yen per kilogram (kg).
In fact, rubber prices had resumed its gains as it opened in the green zone with a rise of 0.11% or 0.20 points at 176.50 position, after ending up 0.63% or 1.10 points at 176.30 level on Friday trading (29 / 6).
According to Masayo Kondo, head of research firm Commodity Intelligence, the burgeoning stock exchange of stocks in China continues to expand.
The amount of rubber stocks monitored by Shanghai exchange rose 1.3% to 505,069 tons last week, the ninth consecutive weekly rise.
"Sluggish manufacturing data also added to concerns that a slowdown in China's economy could curb demand for rubber," Kondo added, as quoted by Bloomberg.
The China Bureau of Statistics (NBS) noted China's Purchasing Managers' Index (PMI) slowed to 51.5 in June, below analyst expectations of 51.6, and 51.9 in May.
The results are in line with recent data (credit growth, investment and retail sales) showing China's economic slowdown, as policy makers manage debt risk and heated up trade ties with the United States.
China's export demand index also contracted for the first time since February 2018, down 0.03% to 49.8 from the previous month.
"Domestic demand is weakening and external demand is facing pressure from an escalation of trade disputes between China and the United States," said Wen Bin, Senior Economist at Minsheng Bank, Beijing, as quoted by Reuters.
In line with rubber, West Texas Intermediate (WTI) oil prices for August delivery in August 2018 fell 0.93%, or 0.69 points, to $ 73.46 a barrel on the New York Mercantile Exchange at 13:46 pm.
Also weighing on rubber, the yen appreciated 0.05% or 0.06 points to 110.69 per dollar at 13.56 GMT, after ending down 0.24% or 0.26 points at 110.75 in trading Friday (29/6).
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.
Thursday, June 28, 2018
TOCOM extends gains into 3rd day on bargain-hunting
Benchmark Tokyo rubber futures extended gains into a third session on Thursday as investors continued to look for bargains and speculators unwound short positions, dealers said.
The Tokyo Commodity Exchange (TOCOM) rubber contract for December delivery finished 1.4 yen, or 0.8%, higher at 175.2 yen (US$1.59) per kg.
"Speculators who have built up short positions over the past month were rapidly unwinding their positions," a Tokyo-based dealer said, adding Wednesday's rally in oil prices also boosted risk appetite among investors.
The TOCOM futures, which set the tone for rubber prices in Southeast Asia, have lost about 15% from May's high by early this week.
Oil prices steadied on Thursday, with US crude pulling back from 3½-year highs, but supply remained tight with investors concerned about the prospect of a big fall in crude exports from Iran due to US sanctions.
"I expect the TOCOM to recover at around 185 yen level as the market has been oversold recently," the dealer said.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 25 yuan to finish at 10,455 yuan (US$1,578) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 138.5 US cents per kg, down 0.5 cent.
The Tokyo Commodity Exchange (TOCOM) rubber contract for December delivery finished 1.4 yen, or 0.8%, higher at 175.2 yen (US$1.59) per kg.
"Speculators who have built up short positions over the past month were rapidly unwinding their positions," a Tokyo-based dealer said, adding Wednesday's rally in oil prices also boosted risk appetite among investors.
The TOCOM futures, which set the tone for rubber prices in Southeast Asia, have lost about 15% from May's high by early this week.
Oil prices steadied on Thursday, with US crude pulling back from 3½-year highs, but supply remained tight with investors concerned about the prospect of a big fall in crude exports from Iran due to US sanctions.
"I expect the TOCOM to recover at around 185 yen level as the market has been oversold recently," the dealer said.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 25 yuan to finish at 10,455 yuan (US$1,578) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 138.5 US cents per kg, down 0.5 cent.
Wednesday, June 27, 2018
Crude Oil Up, Support for NR
Rubber prices closed higher in late trading today, Wednesday (27/06/2018), following the strengthening of crude oil prices.
The price of rubber for delivery in November 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.82% or 1.4 points to 172.90 yen per kilogram.
The previous rubber price opened in the green zone with a rise of 0.82% or 1.4 points at 172.90, after closing stagnant at 171.50 level at the end of trading Tuesday (26/6/2018).
Takaki Shigemoto, an analyst at JSC in Tokyo, said that the strengthening of rubber prices was triggered by increased investor interest in this commodity as the strengthening of oil prices triggered the cost of making synthetic rubber substitute products.
"Prices are also higher because the contract is considered too cheap, amid the high supply and demand fundamentals," said Takaki, as quoted by Bloomberg.
The price of West Texas Intermediate (WTI) oil for August 2018 contract rose 0.34% or 0.34 points to as low as US $ 70.77 per barrel at 14:57 pm, while Brent oil for the same month delivery contract was up 0.47% to the level of US $ 76.67 per barrel.
Meanwhile, the yen appreciated to rise 0.26% or 0.29 points to 109.77 yen per dollar at 15.13.
The price of rubber for delivery in November 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.82% or 1.4 points to 172.90 yen per kilogram.
The previous rubber price opened in the green zone with a rise of 0.82% or 1.4 points at 172.90, after closing stagnant at 171.50 level at the end of trading Tuesday (26/6/2018).
Takaki Shigemoto, an analyst at JSC in Tokyo, said that the strengthening of rubber prices was triggered by increased investor interest in this commodity as the strengthening of oil prices triggered the cost of making synthetic rubber substitute products.
"Prices are also higher because the contract is considered too cheap, amid the high supply and demand fundamentals," said Takaki, as quoted by Bloomberg.
The price of West Texas Intermediate (WTI) oil for August 2018 contract rose 0.34% or 0.34 points to as low as US $ 70.77 per barrel at 14:57 pm, while Brent oil for the same month delivery contract was up 0.47% to the level of US $ 76.67 per barrel.
Meanwhile, the yen appreciated to rise 0.26% or 0.29 points to 109.77 yen per dollar at 15.13.
Friday, June 8, 2018
Worries of over rising supply, NR prices fall down
Rubber prices shed more than 1% in late trading today, Friday (8/6/2018), amid concerns over rising supply from Thailand.
The price of rubber for delivery in November 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.90% or 3.60 points at 186.10 yen per kilogram (kg).
This morning the main commodity price of tire manufacturing was opened flat at 189.70, after ending up 0.85% or 1.60 points on trading Thursday (7/6/2018).
According to Hideshi Matsunaga, Sunward Trading analyst, as rubber supply from Thailand increased after a low production season ended last month, the amount of rubber stocks could continue to rise.
The amount of rubber stocks monitored by the Shanghai Futures Exchange reported rose 0.3% to 475,132 tons last week, the highest level since November.
"Rubber prices are also limited concerns that a trade tension with the United States could push the Japanese currency against the US dollar, thus making rubber [Tocom] prices more expensive for foreign investors," Matsunaga added.
The yen continued to appreciate 0.15 percent, or 0.16 points, to 109.54 per dollar at 13:52 pm, after ending up 0.44 percent or 0.48 points at 109.70 late Thursday / 6).
Quoted by Bloomberg, the yen extended its gains amid global trade tensions ahead of the G7 Summit and concerns over growing instability in some emerging market currencies.
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.
In line with rubber, West Texas Intermediate (WTI) oil prices for July delivery in July 2018 slid and fell 0.49% or 0.32 points to settle at $ 65.63 a barrel on the New York Mercantile Exchange at 13:41 pm.
The price of rubber for delivery in November 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.90% or 3.60 points at 186.10 yen per kilogram (kg).
This morning the main commodity price of tire manufacturing was opened flat at 189.70, after ending up 0.85% or 1.60 points on trading Thursday (7/6/2018).
According to Hideshi Matsunaga, Sunward Trading analyst, as rubber supply from Thailand increased after a low production season ended last month, the amount of rubber stocks could continue to rise.
The amount of rubber stocks monitored by the Shanghai Futures Exchange reported rose 0.3% to 475,132 tons last week, the highest level since November.
"Rubber prices are also limited concerns that a trade tension with the United States could push the Japanese currency against the US dollar, thus making rubber [Tocom] prices more expensive for foreign investors," Matsunaga added.
The yen continued to appreciate 0.15 percent, or 0.16 points, to 109.54 per dollar at 13:52 pm, after ending up 0.44 percent or 0.48 points at 109.70 late Thursday / 6).
Quoted by Bloomberg, the yen extended its gains amid global trade tensions ahead of the G7 Summit and concerns over growing instability in some emerging market currencies.
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.
In line with rubber, West Texas Intermediate (WTI) oil prices for July delivery in July 2018 slid and fell 0.49% or 0.32 points to settle at $ 65.63 a barrel on the New York Mercantile Exchange at 13:41 pm.
Wednesday, May 23, 2018
Worries of lower demand, NR price falls down
Rubber prices continued the correction and shed more than 1% in late trading today, Wednesday (5/23/2018), weighed down by worries of lower demand.
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.26% or 2.50 points at 196.50 yen per kilogram (kg).
In fact, the main commodity price of the tire maker had moved in the green zone when it opened with a 0.10% rise or 0.20 point at 199.20, after ending down 0.50% or 1 point at 199 levels on Tuesday 22/5). Throughout today's trading, rubber prices are moving at the level of 194.90-199.90.
According to Takaki Shigemoto, analyst of research firm JSC, trimming car import tariffs by the Chinese government raises concerns that automotive production in China may decline.
"Thus, it could weaken the demand for rubber from local tire manufacturers," Shigemoto said, as quoted by Bloomberg.
As it is known, Chinese Finance Minister Liu Kun on Tuesday (22/5) said it plans to reduce the tax levy on import tax of vehicles to 15% from 25%. The move will take effect from 1 July.
At the time, the amount of rubber stocks monitored by the Shanghai Futures Exchange rose 2.8% to 470,374 tons last week, the highest level since November.
Not only that, added Shigemoto, the prospect of a higher supply from Thailand also weighed on rubber prices, as it will end the low production season in the country this month.
Rubber prices also weighed on the continued appreciation of the yen. The yen today tracked up 0.47%, or 0.52 point, to 110.38 per dollar at 13:52 pm, after expiring 0.14 per cent or 0.15 points at 110.90 on Tuesday ( 22/5).
In line with rubber, West Texas Intermediate (WTI) oil price for July 2018 futures advanced further down 0.28% or 0.20 points to U $ 72 per barrel position on the New York Mercantile Exchange at 13:42 pm.
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.26% or 2.50 points at 196.50 yen per kilogram (kg).
In fact, the main commodity price of the tire maker had moved in the green zone when it opened with a 0.10% rise or 0.20 point at 199.20, after ending down 0.50% or 1 point at 199 levels on Tuesday 22/5). Throughout today's trading, rubber prices are moving at the level of 194.90-199.90.
According to Takaki Shigemoto, analyst of research firm JSC, trimming car import tariffs by the Chinese government raises concerns that automotive production in China may decline.
"Thus, it could weaken the demand for rubber from local tire manufacturers," Shigemoto said, as quoted by Bloomberg.
As it is known, Chinese Finance Minister Liu Kun on Tuesday (22/5) said it plans to reduce the tax levy on import tax of vehicles to 15% from 25%. The move will take effect from 1 July.
At the time, the amount of rubber stocks monitored by the Shanghai Futures Exchange rose 2.8% to 470,374 tons last week, the highest level since November.
Not only that, added Shigemoto, the prospect of a higher supply from Thailand also weighed on rubber prices, as it will end the low production season in the country this month.
Rubber prices also weighed on the continued appreciation of the yen. The yen today tracked up 0.47%, or 0.52 point, to 110.38 per dollar at 13:52 pm, after expiring 0.14 per cent or 0.15 points at 110.90 on Tuesday ( 22/5).
In line with rubber, West Texas Intermediate (WTI) oil price for July 2018 futures advanced further down 0.28% or 0.20 points to U $ 72 per barrel position on the New York Mercantile Exchange at 13:42 pm.
Tuesday, May 22, 2018
Rubber Price Slips from Highest Level
Rubber prices slipped into the red zone at the end of trading today, Tuesday (05/22/2018), snapping a four-day rally of previous trading rallies.
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.50% or 1 point at 199 yen per kilogram (kg).
In fact, the commodity price of the main material making this tire could continue to strengthen when opened with a 0.30% increase or 0.60 points at 200.60 position.
On Monday, rubber gained 3.15 percent or 6.10 points to 200, the highest level of all-time contracts.
Kei Kobashi, an analyst at Sumitomo Corp., said rubber prices slipped after a rally in Monday's trading seen excessive, considering a number of fundamentals for rubber.
According to Lekshmi Nair, head of economics and statistics at the International Rubber Study Group, global natural rubber production could rise 2% by 2018 from an estimated 13.55 million tonnes for 2017.
Total consumption, including synthetic rubber, could rise 3.2% from an estimated 28.47 million tonnes for 2017.
Also weighing on rubber moves is the end of a low production season in Thailand this month. The previous rubber rally was supported by a low production season until May in Thailand.
Meanwhile, the yen today was observed to depreciate slightly 0.05% or 0.06 point to 111.11 per dollar at 14.33 WIB, after ending down 0.26% or 0.29 point at 111.05 on Monday trading (21/5).
On the other hand, West Texas Intermediate (WTI) oil prices for June 2018 shipment advanced 0.54% or 0.39 points to $ 72.63 a barrel on the New York Mercantile Exchange at 14:22 pm.
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.50% or 1 point at 199 yen per kilogram (kg).
In fact, the commodity price of the main material making this tire could continue to strengthen when opened with a 0.30% increase or 0.60 points at 200.60 position.
On Monday, rubber gained 3.15 percent or 6.10 points to 200, the highest level of all-time contracts.
Kei Kobashi, an analyst at Sumitomo Corp., said rubber prices slipped after a rally in Monday's trading seen excessive, considering a number of fundamentals for rubber.
According to Lekshmi Nair, head of economics and statistics at the International Rubber Study Group, global natural rubber production could rise 2% by 2018 from an estimated 13.55 million tonnes for 2017.
Total consumption, including synthetic rubber, could rise 3.2% from an estimated 28.47 million tonnes for 2017.
Also weighing on rubber moves is the end of a low production season in Thailand this month. The previous rubber rally was supported by a low production season until May in Thailand.
Meanwhile, the yen today was observed to depreciate slightly 0.05% or 0.06 point to 111.11 per dollar at 14.33 WIB, after ending down 0.26% or 0.29 point at 111.05 on Monday trading (21/5).
On the other hand, West Texas Intermediate (WTI) oil prices for June 2018 shipment advanced 0.54% or 0.39 points to $ 72.63 a barrel on the New York Mercantile Exchange at 14:22 pm.
Monday, May 21, 2018
RUBBER PRICE Touchs the Highest Level
Rubber price rally continued at the end of the fourth consecutive day of trading on Monday (21/05/2018), as the weakening performance of the Japanese yen currency.
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 3.15 percent or 6.10 points at 200 yen per kilogram (kg), the highest level of all-time contracts.
This morning, the main commodity price of tire manufacture opened with a 0.31% rise or 0.60 points at 194.50, after ending up 2.11% or 4 points at 193.90 level on Friday (18/5) .
Meanwhile, today's yen exchange rate was down 0.55% or 0.61 points to 111.37 per US dollar at 13.46 WIB, after expiring slightly 0.01% or 0.01 points at the level of 110.76 on Friday trading (18/5).
"Rubber stocks were buoyed by buying as fears surrounding China's economy have eased after the United States and China agreed to suspend the potential for trade war," Gu Jiong, an analyst with Yutaka Shoji, told Bloomberg.
According to a report by Xinhua News Agency quoted by Bloomberg on Sunday (20/05/2018), Chinese Vice Premier Liu He as China's special envoy Xi Xiping to Washington stated talks with US officials including US Treasury Secretary Steven Mnuchin, US Commerce Minister Wilbur Ross , and US Trade Representative (USTR) Robert Lighthizer, ended with a decision not to trigger a trade war.
"The weakening yen against the US dollar also makes the yen-denominated futures market more affordable for foreign investors," said Gu.
The strengthening of rubber, he added, was also supported by Thai rubber prices that remained strong in the middle of a low production season until May.
In line with rubber, West Texas Intermediate (WTI) oil prices for June delivery rose 0.70% or 0.50 points to $ 71.78 a barrel on the New York Mercantile Exchange at 1336 GMT.
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 3.15 percent or 6.10 points at 200 yen per kilogram (kg), the highest level of all-time contracts.
This morning, the main commodity price of tire manufacture opened with a 0.31% rise or 0.60 points at 194.50, after ending up 2.11% or 4 points at 193.90 level on Friday (18/5) .
Meanwhile, today's yen exchange rate was down 0.55% or 0.61 points to 111.37 per US dollar at 13.46 WIB, after expiring slightly 0.01% or 0.01 points at the level of 110.76 on Friday trading (18/5).
"Rubber stocks were buoyed by buying as fears surrounding China's economy have eased after the United States and China agreed to suspend the potential for trade war," Gu Jiong, an analyst with Yutaka Shoji, told Bloomberg.
According to a report by Xinhua News Agency quoted by Bloomberg on Sunday (20/05/2018), Chinese Vice Premier Liu He as China's special envoy Xi Xiping to Washington stated talks with US officials including US Treasury Secretary Steven Mnuchin, US Commerce Minister Wilbur Ross , and US Trade Representative (USTR) Robert Lighthizer, ended with a decision not to trigger a trade war.
"The weakening yen against the US dollar also makes the yen-denominated futures market more affordable for foreign investors," said Gu.
The strengthening of rubber, he added, was also supported by Thai rubber prices that remained strong in the middle of a low production season until May.
In line with rubber, West Texas Intermediate (WTI) oil prices for June delivery rose 0.70% or 0.50 points to $ 71.78 a barrel on the New York Mercantile Exchange at 1336 GMT.
Sunday, May 20, 2018
TOCOM rubber climbed about 1.8%, Sino-US stop trade war to provide.
Tokyo futures price rose on Monday as support was provided by the suspension of trade wars between the United States and China.
Tokyo Commodity Exchange (TOCOM) rubber futures contract for October rose 3.4 yen to 197.3 yen per kilogram.
Earlier in the day, the contract touched a nearly four-month high of 198.5 yen per kilogram.
Shanghai Futures Exchange main contract rubber 1809 contract rose 1.20% to 11,840 yuan per ton.
U.S. dollar was reported at 110.97 yen against the Japanese yen and about 110.92 yen on Friday afternoon.
Crude oil futures ended lower on Friday, suffering from investor profit-taking, but Brent crude recorded a weekly gain for the sixth week in a row, helped by a sharp drop in production in Venezuela, strong global demand and the United States may impose sanctions on Iran.
Japan's Nikkei rose 0.1%.
Tokyo Commodity Exchange (TOCOM) rubber futures contract for October rose 3.4 yen to 197.3 yen per kilogram.
Earlier in the day, the contract touched a nearly four-month high of 198.5 yen per kilogram.
Shanghai Futures Exchange main contract rubber 1809 contract rose 1.20% to 11,840 yuan per ton.
U.S. dollar was reported at 110.97 yen against the Japanese yen and about 110.92 yen on Friday afternoon.
Crude oil futures ended lower on Friday, suffering from investor profit-taking, but Brent crude recorded a weekly gain for the sixth week in a row, helped by a sharp drop in production in Venezuela, strong global demand and the United States may impose sanctions on Iran.
Japan's Nikkei rose 0.1%.
Friday, May 18, 2018
Yen Weakens,Crude Oil Price Up, Sino-US Talks, Rubber Strengthens Three Days
Rubber prices closed higher in late trading on third day in a row on Friday (18/05/2018).
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 2.11% or 4 points to 193.9 yen per kilogram (kg).
Earlier, commodity prices also opened in the red zone with a weakening 0.21% or 0.4 points at 189.5, after ending up 0.74% or 1.4 points to 189.9 level on Thursday trading (17 / 5/2018).
Takaki Shigemoto, an analyst at JSC, said investors' interest in rubber commodities increased following the weakening of the yen, which makes commodities more affordable for foreign investors.
"The crude oil price rally has also increased speculation that the price of synthetic rubber will increase," Takaki said, as quoted by Bloomberg, Friday (18/05/2018).
He continued, the focus of the market is on whether China's rubber reserves will continue to increase, as production in the Yunnan and Hainan regions is on the rise as weather supports.
The price of West Texas Intermediate (WTI) oil for June 2018 contract rose 0.14% or 0.1 point to as low as US $ 71.59 per barrel at 14:25 pm. The global benchmark oil, Brent, was observed rising 0.24% to US $ 79.49 per barrel.
The yen today tracked down 0.07% or 0.08 points to 110.85 yen per dollar at 14.39 pm
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 2.11% or 4 points to 193.9 yen per kilogram (kg).
Earlier, commodity prices also opened in the red zone with a weakening 0.21% or 0.4 points at 189.5, after ending up 0.74% or 1.4 points to 189.9 level on Thursday trading (17 / 5/2018).
Takaki Shigemoto, an analyst at JSC, said investors' interest in rubber commodities increased following the weakening of the yen, which makes commodities more affordable for foreign investors.
"The crude oil price rally has also increased speculation that the price of synthetic rubber will increase," Takaki said, as quoted by Bloomberg, Friday (18/05/2018).
He continued, the focus of the market is on whether China's rubber reserves will continue to increase, as production in the Yunnan and Hainan regions is on the rise as weather supports.
The price of West Texas Intermediate (WTI) oil for June 2018 contract rose 0.14% or 0.1 point to as low as US $ 71.59 per barrel at 14:25 pm. The global benchmark oil, Brent, was observed rising 0.24% to US $ 79.49 per barrel.
The yen today tracked down 0.07% or 0.08 points to 110.85 yen per dollar at 14.39 pm
Thursday, May 17, 2018
Speculation On Demand Increases, Rubber Price Closes Stronger
Rubber prices closed higher in late trading today, Thursday (05/17/2018), amid speculation rising demand.
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.74% or 1.4 points to 189.90 yen per kilogram (kg).
Earlier, commodity prices also opened in the green zone with a gain of 0.11% or 0.2 points at 188.7, after ending up 0.21% or 0.4 point to 188.4 in Wednesday's trading (16 / 5/2018).
Gu Jiong, an analyst with commodity broker Yutaka Shoji, said today's gains in rubber prices are driven by speculation of rising demand.
"There is speculation that low prices will increase demand for rubber from tire manufacturers as car sales in China are increasing," he said, as quoted by Bloomberg.
Known, car sales figures in China grew 11.2% in April, compared to the same period the previous year.
Gu added that the weakening Japanese yen against the US dollar and the strengthening of crude oil prices also contributed to the price of rubber.
The yen today tracked down 0.16 percent or 0.18 points to 110.58 yen per dollar at 13.15 pm.
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.74% or 1.4 points to 189.90 yen per kilogram (kg).
Earlier, commodity prices also opened in the green zone with a gain of 0.11% or 0.2 points at 188.7, after ending up 0.21% or 0.4 point to 188.4 in Wednesday's trading (16 / 5/2018).
Gu Jiong, an analyst with commodity broker Yutaka Shoji, said today's gains in rubber prices are driven by speculation of rising demand.
"There is speculation that low prices will increase demand for rubber from tire manufacturers as car sales in China are increasing," he said, as quoted by Bloomberg.
Known, car sales figures in China grew 11.2% in April, compared to the same period the previous year.
Gu added that the weakening Japanese yen against the US dollar and the strengthening of crude oil prices also contributed to the price of rubber.
The yen today tracked down 0.16 percent or 0.18 points to 110.58 yen per dollar at 13.15 pm.
Monday, May 14, 2018
CONCERNS OVER HIGH STOCK, RUBBER FALL DOWN
Rubber prices ended lower in late trading today, Monday (14/05/2018), amid concerns over the reserves of this commodity in China.
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.57% or 1.1 points to 192.30 yen per kilogram (kg).
Earlier, commodity prices also opened in the red zone with a weakening of 0.05% or 0.1 point to 193.3, after ending up 0.26% or 0.50 points at 193.40 level on Friday trading (11 / 5).
Meanwhile, today's yen exchange rate was down 0.12% or 0.13 points to 109.52 yen per US dollar at 14:53 pm.
Takaki Shigemoto, an analyst at JSC in Tokyo, said that as China's rubber reserves continue to rise, concerns over excess supply continue to weigh on rubber commodity markets.
"With China's high production season continuing throughout May, rubber stocks will continue to rise," Takaki said, as quoted by Bloomberg.
China's raw rubber stocks tracked by the Shanghai Futures Exchange were observed to rise 1.3% to 457,694 tonnes last week. This level is the highest since November
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.57% or 1.1 points to 192.30 yen per kilogram (kg).
Earlier, commodity prices also opened in the red zone with a weakening of 0.05% or 0.1 point to 193.3, after ending up 0.26% or 0.50 points at 193.40 level on Friday trading (11 / 5).
Meanwhile, today's yen exchange rate was down 0.12% or 0.13 points to 109.52 yen per US dollar at 14:53 pm.
Takaki Shigemoto, an analyst at JSC in Tokyo, said that as China's rubber reserves continue to rise, concerns over excess supply continue to weigh on rubber commodity markets.
"With China's high production season continuing throughout May, rubber stocks will continue to rise," Takaki said, as quoted by Bloomberg.
China's raw rubber stocks tracked by the Shanghai Futures Exchange were observed to rise 1.3% to 457,694 tonnes last week. This level is the highest since November
Tuesday, May 8, 2018
Iran, Oil, Trump and Natural Rubber
The price of rubber ended lower in trading today, Tuesday (08/05/2018), after weighed down by the appreciation of Japanese yen exchange rate.
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.93% or 1.8 points at 191.70 yen per kilogram (kg).
On Tuesday (8/5) morning, rubber opened in the red zone with 0.05% down or 0.1 point at 193.4 position, after earlier able to book rebound by ending up 0.78% or 1.5 points in level of 193.5 on Monday trading (7/5).
Meanwhile, today's yen exchange rate continued to strengthen 0.15% or 0.16 point to 108.93 position per US dollar at 14.02 WIB, after expiring slightly appreciated 0.03% or 0.03 point at level 109, 09 on Monday trading (7/5).
The yen strengthened as investor appetite for riskier assets receded amid concerns over US President Donald Trump's announcement plan about Iran's nuclear deal.
In its Twitter account yesterday, Trump said it would announce a decision on the future of an international nuclear deal with Iran on Tuesday (8/5) local time.
He has repeatedly threatened to withdraw from the deal, which contains an agreement for Iran to limit its nuclear activities in return for the lifting of economic sanctions. Except, the delegation of a number of European countries that also signed the agreement improved what he called a weakness in the agreement.
The attractiveness of the yen as a safe haven asset tends to rise amid rising global tensions that drove investors away from riskier assets.
The strengthening 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.
In line with rubber, West Texas Intermediate (WTI) oil prices for June delivery fell 0.75 percent to $ 70.20 a barrel on the New York Mercantile Exchange at 13:52 pm.
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.93% or 1.8 points at 191.70 yen per kilogram (kg).
On Tuesday (8/5) morning, rubber opened in the red zone with 0.05% down or 0.1 point at 193.4 position, after earlier able to book rebound by ending up 0.78% or 1.5 points in level of 193.5 on Monday trading (7/5).
Meanwhile, today's yen exchange rate continued to strengthen 0.15% or 0.16 point to 108.93 position per US dollar at 14.02 WIB, after expiring slightly appreciated 0.03% or 0.03 point at level 109, 09 on Monday trading (7/5).
The yen strengthened as investor appetite for riskier assets receded amid concerns over US President Donald Trump's announcement plan about Iran's nuclear deal.
In its Twitter account yesterday, Trump said it would announce a decision on the future of an international nuclear deal with Iran on Tuesday (8/5) local time.
He has repeatedly threatened to withdraw from the deal, which contains an agreement for Iran to limit its nuclear activities in return for the lifting of economic sanctions. Except, the delegation of a number of European countries that also signed the agreement improved what he called a weakness in the agreement.
The attractiveness of the yen as a safe haven asset tends to rise amid rising global tensions that drove investors away from riskier assets.
The strengthening 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.
In line with rubber, West Texas Intermediate (WTI) oil prices for June delivery fell 0.75 percent to $ 70.20 a barrel on the New York Mercantile Exchange at 13:52 pm.
Wednesday, May 2, 2018
Rubber price movements ended lower in trading - Wednesday (2/5/2018)
Rubber price movements ended lower in trading today, Wednesday (2/5/2018), weighed by a number of factors, including concerns about higher supply.
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.47% or 0.90 points at 192 yen per kilogram (kg).
Earlier this morning, rubber opened in the red zone by 0.21% or 0.40 points down at 192.50, after posting a rebound and ending up sharply 3.93% at 192.90 points on Tuesday ).
According to Takaki Shigemoto, an analyst at research firm JSC in Tokyo, when the low production season in Thailand will end this month, there are concerns about rising supplies weighing on the rubber market.
"[In addition] investor interest for rubber futures has declined as the oil rally stalled, undermining speculation of rising synthetic rubber prices," Shigemoto added, as quoted by Bloomberg.
The West Texas Intermediate (WTI) oil price for June delivery ended down 1.93% at $ 67.25 a barrel on the New York Mercantile Exchange, the lowest in two weeks on Tuesday.
Also weighing on the rubber, the yen today tracked 0.05% or 0.06 points to 109.80 per dollar at 14.22 WIB, after opening with a thin depreciation of 0.01% or 0.01 point at 109 levels , 87.
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 October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.47% or 0.90 points at 192 yen per kilogram (kg).
Earlier this morning, rubber opened in the red zone by 0.21% or 0.40 points down at 192.50, after posting a rebound and ending up sharply 3.93% at 192.90 points on Tuesday ).
According to Takaki Shigemoto, an analyst at research firm JSC in Tokyo, when the low production season in Thailand will end this month, there are concerns about rising supplies weighing on the rubber market.
"[In addition] investor interest for rubber futures has declined as the oil rally stalled, undermining speculation of rising synthetic rubber prices," Shigemoto added, as quoted by Bloomberg.
The West Texas Intermediate (WTI) oil price for June delivery ended down 1.93% at $ 67.25 a barrel on the New York Mercantile Exchange, the lowest in two weeks on Tuesday.
Also weighing on the rubber, the yen today tracked 0.05% or 0.06 points to 109.80 per dollar at 14.22 WIB, after opening with a thin depreciation of 0.01% or 0.01 point at 109 levels , 87.
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.
Monday, April 30, 2018
North Sumatra is predicted to decrease by 30% -40% until June 2018
The production of rubber estates in North Sumatra is predicted to decrease by 30% -40% until June 2018.
General Secretary of the Rubber Association of Indonesia Rubber Company Edy Irwansyah said the disruption of rubber production in this plantation due to the second leaf fall in 2018.
"It has been reported from several rubber plantation centers in North Sumatra, a second leaf fall in 2018," he said in a written statement on Sunday (29/4/2018).
According to Edy, this second leaf fall occurred in Labuhan Batu, Asahan, and Simalungun. Furthermore, he explained that the first leaf fall that occurred in early 2018 is an annual cycle that occurs naturally because of the mechanisms of plant adaptation to environmental conditions that enter the dry season.
However, the second leaf fall that occurred since the beginning of April to this day is thought to be the effect of anomalous weather in which rainfall suddenly becomes high. This then stimulates the growth of the fungus.
"The deciduous leaves are not old leaves as in early 2018, but on the shoots of young leaves and leaves caused by a kind of fungus," added Edy.
Nevertheless, it still can not describe how far this condition will affect the rubber factory. The reason is, even if there is a shortage of supply from the garden, the plant can still operate by relying on supply from other provinces although there will be consequences of higher prices.
General Secretary of the Rubber Association of Indonesia Rubber Company Edy Irwansyah said the disruption of rubber production in this plantation due to the second leaf fall in 2018.
"It has been reported from several rubber plantation centers in North Sumatra, a second leaf fall in 2018," he said in a written statement on Sunday (29/4/2018).
According to Edy, this second leaf fall occurred in Labuhan Batu, Asahan, and Simalungun. Furthermore, he explained that the first leaf fall that occurred in early 2018 is an annual cycle that occurs naturally because of the mechanisms of plant adaptation to environmental conditions that enter the dry season.
However, the second leaf fall that occurred since the beginning of April to this day is thought to be the effect of anomalous weather in which rainfall suddenly becomes high. This then stimulates the growth of the fungus.
"The deciduous leaves are not old leaves as in early 2018, but on the shoots of young leaves and leaves caused by a kind of fungus," added Edy.
Nevertheless, it still can not describe how far this condition will affect the rubber factory. The reason is, even if there is a shortage of supply from the garden, the plant can still operate by relying on supply from other provinces although there will be consequences of higher prices.
Wednesday, April 25, 2018
US Consumer better, NR Rebound
Rubber prices rebounded and ended higher in trading today, Wednesday (25/4/2018), amid the depreciation of the yen against the US dollar.
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.48% or 0.90 points at 188.80 yen per kilogram (kg), reversing the weakening experienced in the previous trading session.
Rubber starts to rebound as it opens in the green zone with a 0.05% rise or 0.10 point at 188 this morning. In trading Tuesday (24/4), the price of this commodity ended down 0.48% at the level of 187.90 points.
According to Naohiro Niimura, a partner at Market Risk Advisory research firm, the weakening yen boosted buying action against rubber.
The yen today tracked down 0.31% or 0.34 points to 109.15 per dollar at 13:56 pm, after ending depreciating 0.09% at 108.81 yesterday. Thus, the yen has weakened for the sixth straight day.
As is known, the movement of rubber prices is usually inversely proportional to the yen. Yen breaking gives fresh air for rubber and can lift the price of this commodity with the potential increase of demand from buyer.
"The level of US consumer confidence is better than expectations also provide support. Nevertheless, the strengthening of [rubber price] is limited by the weakness of equity that triggers the sale, "Niimura continued, as quoted by Bloomberg.
US consumer confidence in April unexpectedly rose to the second highest level since 2000, as optimism among Americans grew larger on both current conditions and the economic outlook, according to Conference Board data.
The Confidence Index rose to position 128.7, higher than 126 forecasts as well as the level achieved in March of 127.
On the other hand, the movement of Asian stock markets in trading today fell following the US market, as concerns about the earnings outlook weighed on industrial and tech stocks.
Meanwhile, US 10-year bond yields stabilized after breaking the 3% level, for the first time in four years.
Tuesday, April 24, 2018
TOCOM ends lower on weak Shanghai futures, high inventory
Benchmark Tokyo rubber futures ended lower on Tuesday, taking cues from a weak Shanghai market, as domestic rubber stockpiles continued to grow.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, fell slightly on Tuesday after hitting a one-month high last week.
"Rubber stocks are still quite high. Demand, on the other hand, is steady. So the rise would be limited," said Zhang Li, analyst, First Futures.
The Tokyo Commodity Exchange rubber contract for October delivery finished 1.2 yen lower at 187.6 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery dropped 115 yuan to finish at 11,530 yuan per tonne.
The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 138.5 U.S. cents per kg, down 1.8 cents.
Tuesday, April 17, 2018
China's Economy Positive, Rubber Price Closed Rebound
Rubber prices closed a rebound in late trading today, Tuesday (17/4/20174), buoyed by strong Chinese economic data.
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.56% or 1 point to as low as 18.20 yen per kilogram (kg).
This morning the rubber price opened a rebound 0.17% or 0.30 points at 179.50 position, after yesterday's trading on Monday (16/3), the rubber closed down 3.03% or 5.6 points at 179.2 position .
Gu Jiong, commodity broker analyst Yutaka Shoji in Tokyo, said strong Chinese economic data boosted optimism that demand for rubber would increase.
"Investors are also paying attention to the tight supply of commodities in Thailand during the low production season," he said, as quoted by Bloomberg.
Meanwhile, China's economic growth is able to survive strongly amid solid consumer spending. The China National Bureau of Statistics (NBS) report on Tuesday (17/4/2018) revealed that China's Gross Domestic Product (GDP) grew 6.8% in the first quarter of 2018 from the previous year.
This achievement is equal to growth in the previous quarter and is in line with projections in a Bloomberg survey.
Meanwhile, retail sales increased 10.1% in March from a year earlier, industrial production rose 6% last month, and fixed asset investment climbed 7.5% in the first quarter of this year.
Meanwhile, today's yen exchange was observed to rise 0.17% or 0.18 points to 106.94 yen per US dollar at 14:15 pm.
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.56% or 1 point to as low as 18.20 yen per kilogram (kg).
This morning the rubber price opened a rebound 0.17% or 0.30 points at 179.50 position, after yesterday's trading on Monday (16/3), the rubber closed down 3.03% or 5.6 points at 179.2 position .
Gu Jiong, commodity broker analyst Yutaka Shoji in Tokyo, said strong Chinese economic data boosted optimism that demand for rubber would increase.
"Investors are also paying attention to the tight supply of commodities in Thailand during the low production season," he said, as quoted by Bloomberg.
Meanwhile, China's economic growth is able to survive strongly amid solid consumer spending. The China National Bureau of Statistics (NBS) report on Tuesday (17/4/2018) revealed that China's Gross Domestic Product (GDP) grew 6.8% in the first quarter of 2018 from the previous year.
This achievement is equal to growth in the previous quarter and is in line with projections in a Bloomberg survey.
Meanwhile, retail sales increased 10.1% in March from a year earlier, industrial production rose 6% last month, and fixed asset investment climbed 7.5% in the first quarter of this year.
Meanwhile, today's yen exchange was observed to rise 0.17% or 0.18 points to 106.94 yen per US dollar at 14:15 pm.
Friday, April 13, 2018
Global Demand Increases, Rubber Price Stronger
Rubber prices continued to strengthen at the end of trading the second day in a row, Friday (13/4/2018), following reports of rising global demand beyond global supply.
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.98% or 1.80 points at 184.80 yen per kilogram (kg).
This morning the rubber price opened with a 0.16% rise or 0.30 points at 183.30, after successfully rebounding and ending up 0.60% or 1.10 points at 183 level in trading on Thursday (12/4).
The Association of Natural Rubber Producing Countries (ANRPC) said global demand for natural rubber rose 7.6% y / y to 3.36 million tonnes in the first quarter.
On the other hand, global supply grew 3.3% y / y to 3.15 million tonnes in the first quarter.
Meanwhile, according to Sunward Trading analyst Hideshi Matsunaga, rubber prices recovered as the Tokyo exchanges look oversold compared to the physical rubber market.
"The low production season in Thailand as well as the depreciation of the yen against the US dollar also gave a boost," added Matsunaga.
Today's yen exchange rate continued to weaken 0.29% or 0.31 points to 107.64 position per US dollar at 13:49 pm, having ended weakened 0.51% or 0.54 pound at level 107.33 on Wednesday (12/4).
As is known, the movement of rubber prices is usually inversely proportional to the yen. Yen breaking gives fresh air for rubber and can lift the price of this commodity with the potential increase of demand from buyer.
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.98% or 1.80 points at 184.80 yen per kilogram (kg).
This morning the rubber price opened with a 0.16% rise or 0.30 points at 183.30, after successfully rebounding and ending up 0.60% or 1.10 points at 183 level in trading on Thursday (12/4).
The Association of Natural Rubber Producing Countries (ANRPC) said global demand for natural rubber rose 7.6% y / y to 3.36 million tonnes in the first quarter.
On the other hand, global supply grew 3.3% y / y to 3.15 million tonnes in the first quarter.
Meanwhile, according to Sunward Trading analyst Hideshi Matsunaga, rubber prices recovered as the Tokyo exchanges look oversold compared to the physical rubber market.
"The low production season in Thailand as well as the depreciation of the yen against the US dollar also gave a boost," added Matsunaga.
Today's yen exchange rate continued to weaken 0.29% or 0.31 points to 107.64 position per US dollar at 13:49 pm, having ended weakened 0.51% or 0.54 pound at level 107.33 on Wednesday (12/4).
As is known, the movement of rubber prices is usually inversely proportional to the yen. Yen breaking gives fresh air for rubber and can lift the price of this commodity with the potential increase of demand from buyer.
Wednesday, April 11, 2018
China's Inflation Slows, Rubber Price Slows
Rubber prices slipped and ended lower in today's trading on Wednesday (11/4/2018), weighed by concerns about sluggish demand for the commodity.
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.87% or 1.60 points at 181.90 yen per kilogram (kg).
This morning the rubber price opened stagnant at 183.50 position, after strengthening 1.21% or 2.20 points at the end of trading Tuesday (10/4).
According to Naohiro Niimura, a partner at market research firm Risk Advisory, the signs of China's economic slow down have the potential to weaken demand for rubber.
China's inflation rate retreated from a four-year high in March 2018, while production inflation slowed for a fifth month in a row.
Based on China's statistics bureau data, the consumer price index (CPI) rose 2.1% in March 2018 (year-on-year / yoy), lower than economists' forecast in a Bloomberg survey of 2.6% and CPI in February at 2.9%.
Meanwhile, the producer price index (PPI) rose 3.1% in March compared to the same period the previous year, lower than the 3.3% projection in a Bloomberg survey and a 3.7% gain in February.
"However, the decline was limited to a dovish dubbed Xi Jinping speech on Tuesday [10/4], thereby providing a relief that a trade war between the United States (AS0 and China could be avoided," Niimura said, as quoted by Bloomberg.
In line with rubber, West Texas Intermediate oil prices slid and fell 0.24% or 0.16 points to as low as US $ 65.35 per barrel on the New York Mercantile Exchange at 13:52 pm.
The Nikkei 225 index also ended in the red zone by falling 0.49% or 107.22 points and ending at 21,687.10, after closing up 0.54% or 116.06 points at 21,794.32 on Tuesday (10 / 4).
In addition to pressing the rubber, the yen today strengthened 0.11% or 0.12 points to 107.08 per US dollar at 14.02 WIB.
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.87% or 1.60 points at 181.90 yen per kilogram (kg).
This morning the rubber price opened stagnant at 183.50 position, after strengthening 1.21% or 2.20 points at the end of trading Tuesday (10/4).
According to Naohiro Niimura, a partner at market research firm Risk Advisory, the signs of China's economic slow down have the potential to weaken demand for rubber.
China's inflation rate retreated from a four-year high in March 2018, while production inflation slowed for a fifth month in a row.
Based on China's statistics bureau data, the consumer price index (CPI) rose 2.1% in March 2018 (year-on-year / yoy), lower than economists' forecast in a Bloomberg survey of 2.6% and CPI in February at 2.9%.
Meanwhile, the producer price index (PPI) rose 3.1% in March compared to the same period the previous year, lower than the 3.3% projection in a Bloomberg survey and a 3.7% gain in February.
"However, the decline was limited to a dovish dubbed Xi Jinping speech on Tuesday [10/4], thereby providing a relief that a trade war between the United States (AS0 and China could be avoided," Niimura said, as quoted by Bloomberg.
In line with rubber, West Texas Intermediate oil prices slid and fell 0.24% or 0.16 points to as low as US $ 65.35 per barrel on the New York Mercantile Exchange at 13:52 pm.
The Nikkei 225 index also ended in the red zone by falling 0.49% or 107.22 points and ending at 21,687.10, after closing up 0.54% or 116.06 points at 21,794.32 on Tuesday (10 / 4).
In addition to pressing the rubber, the yen today strengthened 0.11% or 0.12 points to 107.08 per US dollar at 14.02 WIB.
Tuesday, April 10, 2018
Rubber Prices Up on the Third Day.
Rubber price rally continued and ended up more than one percent on the third day of trading in a row on Tuesday (10/4/2018), sustained reports of falling commodity reserves in Qingdao.
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 1.21% or 2.20 points at 183.50 yen per kilogram (kg).
This morning the rubber price opened in the green zone with a rise of 0.22% or 0.40 points at position 181.70. On Monday (9/4) trade, the rubber ended up 1.12% or 2 points at the 181.30 level.
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, a report released last night showed the amount of rubber reserves in Qingdao, China, fell for a third week, boosting optimism for recovery in demand in China.
Meanwhile, the amount of natural rubber inventories in Qingdao fell 12% to 107,800 tonnes during the week ended March 30, the decline for the 3rd week, to the lowest level since January 2017.
"Some traders are also worried about supply during the low production season as Thailand slashed its exports more than expected," Saito added, as quoted by Bloomberg.
Along with the rubber, West Texas Intermediate oil prices gained 1.31 percent, or 0.83 points, to settle at $ 64.25 a barrel on the New York Mercantile Exchange at 13.40 pm.
Supporting the rubber, the Nikkei 225 index ended up 0.54% or 116.06 points to 21,794.32, after opening down 0.36% or 78.59 points at 21,599.67.
The yen today was down 0.37% or 0.40 points to 107.17 per dollar at 13.50 WIB, after ending up 0.14% at 106.77 on Monday (9/4) .
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 1.21% or 2.20 points at 183.50 yen per kilogram (kg).
This morning the rubber price opened in the green zone with a rise of 0.22% or 0.40 points at position 181.70. On Monday (9/4) trade, the rubber ended up 1.12% or 2 points at the 181.30 level.
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, a report released last night showed the amount of rubber reserves in Qingdao, China, fell for a third week, boosting optimism for recovery in demand in China.
Meanwhile, the amount of natural rubber inventories in Qingdao fell 12% to 107,800 tonnes during the week ended March 30, the decline for the 3rd week, to the lowest level since January 2017.
"Some traders are also worried about supply during the low production season as Thailand slashed its exports more than expected," Saito added, as quoted by Bloomberg.
Along with the rubber, West Texas Intermediate oil prices gained 1.31 percent, or 0.83 points, to settle at $ 64.25 a barrel on the New York Mercantile Exchange at 13.40 pm.
Supporting the rubber, the Nikkei 225 index ended up 0.54% or 116.06 points to 21,794.32, after opening down 0.36% or 78.59 points at 21,599.67.
The yen today was down 0.37% or 0.40 points to 107.17 per dollar at 13.50 WIB, after ending up 0.14% at 106.77 on Monday (9/4) .
Monday, April 9, 2018
Rubber Prices Up, Following Crude Oil
Rubber prices managed to resume its rally and ended up more than one percent in the second day of trading in a row on Monday (9/4/2018), supported by the strengthening of crude oil.
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 1.12% or 2 points at 181.30 yen per kilogram (kg).
Though the price of rubber had slipped into the red zone after it opened down 0.39% or 0.70 points at 178.60 position. On Friday's trade (6/4), the rubber rebounded and ended up 1.70% or 3 points at 179.30.
According to Gu Jiong, an analyst at brokerage firm Yutaka Shoji, rising crude oil prices and expectations of a decrease in the amount of rubber reserves in Qingdao have helped boost rubber prices.
The price of West Texas Intermediate oil was up 0.42% or 0.26 points to as low as US $ 62.32 per barrel on the New York Mercantile Exchange at 13.42 WIB.
Meanwhile, the amount of rubber inventory in Qingdao fell 8% to 122,000 tonnes on March 23, the decline for week 2.
On the other hand, the number of stocks monitored by the Shanghai Futures Exchange rose 0.4% to 444,611 tons last week, an increase for the 19th week, to its highest level since November.
Supporting the rubber, the Nikkei 225 index rebounded and ended up 0.51% or 110.74 points to 21,678.26, after opening down 0.15% or 33.19 points at 21,534.33.
The yen today was down 0.17 percent or 0.18 points to 107.10 per dollar at 13:52 pm, after ending up 0.43 percent at 106.92 on Friday (6/4) .
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 1.12% or 2 points at 181.30 yen per kilogram (kg).
Though the price of rubber had slipped into the red zone after it opened down 0.39% or 0.70 points at 178.60 position. On Friday's trade (6/4), the rubber rebounded and ended up 1.70% or 3 points at 179.30.
According to Gu Jiong, an analyst at brokerage firm Yutaka Shoji, rising crude oil prices and expectations of a decrease in the amount of rubber reserves in Qingdao have helped boost rubber prices.
The price of West Texas Intermediate oil was up 0.42% or 0.26 points to as low as US $ 62.32 per barrel on the New York Mercantile Exchange at 13.42 WIB.
Meanwhile, the amount of rubber inventory in Qingdao fell 8% to 122,000 tonnes on March 23, the decline for week 2.
On the other hand, the number of stocks monitored by the Shanghai Futures Exchange rose 0.4% to 444,611 tons last week, an increase for the 19th week, to its highest level since November.
Supporting the rubber, the Nikkei 225 index rebounded and ended up 0.51% or 110.74 points to 21,678.26, after opening down 0.15% or 33.19 points at 21,534.33.
The yen today was down 0.17 percent or 0.18 points to 107.10 per dollar at 13:52 pm, after ending up 0.43 percent at 106.92 on Friday (6/4) .
Friday, April 6, 2018
Rubber-related Chinese imports subject to tariffs
WASHINGTON—At least 10 categories of tires, rubber, rubber products and rubber processing machinery are on the list issued by the Office of the U.S. Trade Representative of goods imported from China that are subject to a 25 percent tariff.
The USTR issued the list on its website in response to the order President Trump signed March 22, encompassing Chinese goods worth an estimated $50 billion.
The proposed list encompasses approximately 1,200 separate tariff lines as defined under the Harmonized Tariff Schedule of the U.S., USTR said in a notice pending publication in the Federal Register as of April 4.
Tire- and rubber-related goods on the list are as follows:
- 40061000: "Camel-back" strips of unvulcanized rubber for retreading rubber tires;
- 40091200: Tubes, pipes and hoses of vulcanized rubber other than hard rubber, not reinforced or combined with other materials nesoi, with fittings;
- 40094200: Tubes, pipes and hoses of vulcanized rubber other than hard rubber, reinforced or combined with other materials nesoi, with fittings;
- 40101100: Conveyor belts or belting of vulcanized rubber, reinforced only with metal;
- 40113000: New pneumatic tires, of rubber, of a kind used on aircraft;
- 40121300: Retreaded pneumatic tires, of rubber, of a kind used on aircraft;
- 40121980: Retreaded pneumatic tires (non-radials), of rubber, not otherwise specified or included;
- 40169915: Caps, lids, seals, stoppers and other closures, of noncellular vulcanized rubber other than hard rubber;
- 84659200: Planing, milling or molding (by cutting) machines for working wood, cork, bone, hard rubber, hard plastics or similar hard materials; and
- 84659300: Grinding, sanding or polishing machines for working wood, cork, bone, hard rubber, hard plastics or similar hard materials.
According to the USTR notice, the administration chose to levy tariffs against all these products because of various unfair Chinese trade practices.
"The Chinese government reportedly uses a variety of tools, including opaque and discretionary administrative approval processes, joint venture requirements, foreign equity limitations, procurements, and other mechanisms to regulate or intervene in U.S. companies' operations in China, in order to require or pressure the transfer of technologies and intellectual property by Chinese companies," the notice said.
The Chinese government also follows practices and policies that deprive U.S. companies of the ability to set market-based licensing terms with Chinese companies, it said.
USTR has scheduled a public hearing on the proposed tariffs May 15 at the headquarters of the U.S. International Trade Commission, according to the notice. Interested parties have until April 23 to file requests to appear at the hearing and May 11 to submit written comments.
The agency strongly prefers electronic submissions made through the federal e-rulemaking portal, regulations.gov. The docket number is USTR-2015-005, USTR said.
Organizations such as the U.S. Tire Manufacturers Association, the Tire Retread & Repair Information Bureau and the Association for Rubber Products Manufacturers could not immediately be reached for comment. The Tire Industry Association said it would not take a stand on the tariffs, because of the divergent opinions of its retreader and commercial tire dealer members.
China retaliated against the U.S. with its own list of U.S. goods facing 15- and 25-percent tariffs. The goods encompassed fruits, nuts, wine, pork products, steel products and aluminum scraps, but nothing directly tire- or rubber-related.
Thursday, April 5, 2018
China's Rubber Reserves Increase, Rubber Prices Weak on Fourth Day
Rubber prices continued weakening at the end of trading the fourth day in a row on Thursday (5/4/2018).
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.84% or 3.30 points to 176.30 yen per kilogram (kg).
Previously, the rubber price opened down 0.33% or 0.60 points position 179, after ending down 0.28% or 0.50 points to 179.60 level in trading Wednesday (4/4/2018).
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi in Tokyo, high levels of rubber reserves in China and concerns over declining demand weighed on market sentiment today.
"Sentiment is depressed amid low trading volume along with holidays in China," Kazuhiko said, as quoted by Bloomberg.
Rubber stocks tracked by the Shanghai Futures Exchange increased 0.4% to 444,611 tonnes as of Thursday (5/4). This is an improvement in the 19th consecutive week.
Meanwhile, today's yen exchange rate was down 0.27% or 0.29 points to 107.07 position per US dollar at 15.02 WIB.
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.84% or 3.30 points to 176.30 yen per kilogram (kg).
Previously, the rubber price opened down 0.33% or 0.60 points position 179, after ending down 0.28% or 0.50 points to 179.60 level in trading Wednesday (4/4/2018).
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi in Tokyo, high levels of rubber reserves in China and concerns over declining demand weighed on market sentiment today.
"Sentiment is depressed amid low trading volume along with holidays in China," Kazuhiko said, as quoted by Bloomberg.
Rubber stocks tracked by the Shanghai Futures Exchange increased 0.4% to 444,611 tonnes as of Thursday (5/4). This is an improvement in the 19th consecutive week.
Meanwhile, today's yen exchange rate was down 0.27% or 0.29 points to 107.07 position per US dollar at 15.02 WIB.
Tuesday, April 3, 2018
Sluggish Economic Data, Rubber Prices Weak on Day Two
Rubber prices closed lower again in the second day of trading in a row, Tuesday (3/4/2018), depressed fears of weak demand.
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.83% or 1.50 points to 180.1 yen per kilogram (kg).
Previously, rubber prices opened stagnant at 181.60 position after ending down 1.30% or 2.40 points on Monday trading (2/4/2018).
According to Gu Jiong, an analyst at brokerage firm Yutaka Shoji in Tokyo, concerns surrounding weak demand alongside sluggish economic data and declining Nikkei performance have put pressure on rubber prices.
Nikkei 225 index today closed down 0.45% or 96.29 points to 21,292.29 level, after it opened slipped 1.28% or 273.10 points at 21,115.48 position.
Rubber prices were depressed on the second day, following the data of Japanese business sentiment. The index of business sentiment according to the BOE's BOE survey dropped to 24 in the first quarter, lower than analysts' forecast of 25 at the same time at 26 levels in the previous quarter.
Meanwhile, manufacturing purchasing managers index released by Caixin Media and Markit Economics for March showed a decline to 51 from 51.6 in February. "The trade tension between the United States and China adds negative sentiment to rubber," added Gu Jiong.
China announced yesterday imposing import tariffs of up to 25% on 128 US products, raising tensions between the world's two largest economies.
On the other hand, today's yen exchange rate is turning down 0.08% or 0.08 points to 105.97 per US dollar at 14.10 WIB, after ending up 0.36% at 105.90 on Monday ( 2/4)
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.83% or 1.50 points to 180.1 yen per kilogram (kg).
Previously, rubber prices opened stagnant at 181.60 position after ending down 1.30% or 2.40 points on Monday trading (2/4/2018).
According to Gu Jiong, an analyst at brokerage firm Yutaka Shoji in Tokyo, concerns surrounding weak demand alongside sluggish economic data and declining Nikkei performance have put pressure on rubber prices.
Nikkei 225 index today closed down 0.45% or 96.29 points to 21,292.29 level, after it opened slipped 1.28% or 273.10 points at 21,115.48 position.
Rubber prices were depressed on the second day, following the data of Japanese business sentiment. The index of business sentiment according to the BOE's BOE survey dropped to 24 in the first quarter, lower than analysts' forecast of 25 at the same time at 26 levels in the previous quarter.
Meanwhile, manufacturing purchasing managers index released by Caixin Media and Markit Economics for March showed a decline to 51 from 51.6 in February. "The trade tension between the United States and China adds negative sentiment to rubber," added Gu Jiong.
China announced yesterday imposing import tariffs of up to 25% on 128 US products, raising tensions between the world's two largest economies.
On the other hand, today's yen exchange rate is turning down 0.08% or 0.08 points to 105.97 per US dollar at 14.10 WIB, after ending up 0.36% at 105.90 on Monday ( 2/4)
Monday, April 2, 2018
Rubber Prices Drop Absorbed US-China Trade Tension
Rubber prices fell more than 1 percent for the second straight day of trading on Tuesday (3/4/2018), in line with the weakening Japanese stock market.
The price of rubber for delivery in September 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), slipped 1.16 percent or 2.10 points to 179.50 yen per kg at 10:52 pm.
Previously, rubber prices opened stagnant at 181.60 position after ending down 1.30% or 2.40 points on Monday trading (2/4).
According to Gu Jiong, an analyst at brokerage firm Yutaka Shoji in Tokyo, concerns surrounding weak demand alongside sluggish economic data and declining Nikkei performance have put pressure on rubber prices.
Nikkei 225 index today fell 0.58% or 123.16 points to the level of 21,365.42 at 10:38 pm, having opened slipped 1.28% or 273.10 points at 21,115.48 position.
Rubber prices were depressed on the second day, following the data of Japanese business sentiment. The index of business sentiment according to the BOE's BOE survey dropped to 24 in the first quarter, lower than analysts' forecast of 25 at the same time at 26 levels in the previous quarter.
Meanwhile, manufacturing purchasing managers index released by Caixin Media and Markit Economics for March showed a decline to 51 from 51.6 in February.
"The trade tension between the United States and China adds negative sentiment to rubber," added Gu Jiong.
China announced yesterday imposing import tariffs of up to 25% on 128 US products, raising tensions between the world's two largest economies.
On the other hand, today's yen exchange rate is turning down 0.05% or 0.05 points to 105.95 per dollar at 10:58 pm, having ended up 0.36% at 105.90 on Monday ( 2/4).
Contract Rubber Price Movement September 2018 in Tocom
The price of rubber for delivery in September 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), slipped 1.16 percent or 2.10 points to 179.50 yen per kg at 10:52 pm.
Previously, rubber prices opened stagnant at 181.60 position after ending down 1.30% or 2.40 points on Monday trading (2/4).
According to Gu Jiong, an analyst at brokerage firm Yutaka Shoji in Tokyo, concerns surrounding weak demand alongside sluggish economic data and declining Nikkei performance have put pressure on rubber prices.
Nikkei 225 index today fell 0.58% or 123.16 points to the level of 21,365.42 at 10:38 pm, having opened slipped 1.28% or 273.10 points at 21,115.48 position.
Rubber prices were depressed on the second day, following the data of Japanese business sentiment. The index of business sentiment according to the BOE's BOE survey dropped to 24 in the first quarter, lower than analysts' forecast of 25 at the same time at 26 levels in the previous quarter.
Meanwhile, manufacturing purchasing managers index released by Caixin Media and Markit Economics for March showed a decline to 51 from 51.6 in February.
"The trade tension between the United States and China adds negative sentiment to rubber," added Gu Jiong.
China announced yesterday imposing import tariffs of up to 25% on 128 US products, raising tensions between the world's two largest economies.
On the other hand, today's yen exchange rate is turning down 0.05% or 0.05 points to 105.95 per dollar at 10:58 pm, having ended up 0.36% at 105.90 on Monday ( 2/4).
Contract Rubber Price Movement September 2018 in Tocom
Rubber Price Weaken Over 1%, Weighed on Demand Concerns
Rubber prices slumped to the red zone by more than 1% in today's trading on Monday (2/4/2018), weighed by concerns about demand for the commodity.
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.3% or 2.40 points to 181.60 yen per kilogram (kg).
In fact, rubber prices had resumed gains in the green zone after opening with an increase of 0.33% or 0.60 points at the level of 184.60 yen per kg.
On Friday's trade (30/3) rubber price for September 2018 contract finished up 1.10% or 2 points at the level of 184 yen per kilogram (kg).
According to Naohiro Niimura, a partner at Market Risk Advisory research firm, the release of Tankan data by the Bank of Japan (BOJ) today raises concerns about rubber demand.
The sentiment of confidence among major Japanese manufacturers slipped from the highest level in more than a decade in the first quarter of 2018, due to the burden of currency appreciation that depressed the earnings outlook.
The business sentiment index, according to the BOE BOE's Tankan survey, fell to 24 in the first quarter, lower than analysts' forecast of 25 at the same time at 26 levels in the previous quarter.
Meanwhile, the outlook among large producers and for large non-producers fell to 20 each. Among small firms, producer sentiment indexes did not change at level 15, while non-producer firms rose to 10 from 9.
On the other hand, today's yen exchange rate was weakened 0.02% or 0.02 points to 106.3 position per US dollar at 14:59 pm, having ended up 0.14% at 106.28 on Friday trading ( 30/3).
"At the same time, [rubber prices are weighed] rising supply concerns as exporters continue their export activity," Niimura added.
As is known, the program of export restrictions by a number of major producing countries namely Thailand, Indonesia and Malaysia has ended on March 31
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.3% or 2.40 points to 181.60 yen per kilogram (kg).
In fact, rubber prices had resumed gains in the green zone after opening with an increase of 0.33% or 0.60 points at the level of 184.60 yen per kg.
On Friday's trade (30/3) rubber price for September 2018 contract finished up 1.10% or 2 points at the level of 184 yen per kilogram (kg).
According to Naohiro Niimura, a partner at Market Risk Advisory research firm, the release of Tankan data by the Bank of Japan (BOJ) today raises concerns about rubber demand.
The sentiment of confidence among major Japanese manufacturers slipped from the highest level in more than a decade in the first quarter of 2018, due to the burden of currency appreciation that depressed the earnings outlook.
The business sentiment index, according to the BOE BOE's Tankan survey, fell to 24 in the first quarter, lower than analysts' forecast of 25 at the same time at 26 levels in the previous quarter.
Meanwhile, the outlook among large producers and for large non-producers fell to 20 each. Among small firms, producer sentiment indexes did not change at level 15, while non-producer firms rose to 10 from 9.
On the other hand, today's yen exchange rate was weakened 0.02% or 0.02 points to 106.3 position per US dollar at 14:59 pm, having ended up 0.14% at 106.28 on Friday trading ( 30/3).
"At the same time, [rubber prices are weighed] rising supply concerns as exporters continue their export activity," Niimura added.
As is known, the program of export restrictions by a number of major producing countries namely Thailand, Indonesia and Malaysia has ended on March 31
Rubber Export Restrictions Have Not Significant Impacts to World Rubber Prices
The implementation of rubber export restrictions through the Agreed Export Tonnage Scheme (AETS) has not had a significant impact on the increase of world rubber price. The export scheme has been implemented in the first quarter of 2018 by Indonesia, Malaysia, and Thailand as the largest rubber producer incorporated in the International Tripartite Rubber Council (ITRC) agreement.
Although it has not had a significant impact on price improvement, but at least that restriction can reduce the pressure of the selling price decrease so as not to plummet too deep.
"AETS policy has become technical, no longer fundamental," said Chairman of Indonesian Rubber Industry Association (Gapkindo) Moenardji Soedargo to Katadata, Monday (2/4).
Referring to the International Rubber Consortium (IRCo), rubber SIR 20 touched the level of US $ 2.33 per kilogram early last year, then dropped to around US $ 1.46 in November 2017. However, when the AETS restriction policy began to be established in December 2017 until January 2018, admitted Moenardji prices began to move steadily.
The issue of trade war between the United States (US) and China also recorded has made the price pressured to reach US $ 1.52 per kg, where the price of rubber SIR 20 observed reached about US $ 1.46 on March 19, 2018. "Towards the end of March , the market is again depressed for commodities, "said Moenardji.
Meanwhile, the Director of the APEC and International Organization of Trade, Directorate General of International Trade Negotiations, Ministry of Trade, Deny Wachyudi Kurnia explained the evaluation of the three countries related to the implementation of AETS will be done after rubber price data out on April 15, 2018.
"We will evaluate the plan in May," he said.
In addition to price issues, many other conditions are also highlighted by the three countries. For example, in respect of each country's compliance with the achievement of the AETS objectives of preventing over-supply in the international market.
The restriction of rubber exports in AETS policy is also considered to have no effect on the welfare of farmers. Therefore, to increase the added value of natural rubber, farmers ask the government to issue a downstream policy or rubber processing industry in the country.
Chairman of the Association of Indonesian Rubber Farmers (APKI) Lukman Zakaria said the government should issue a policy that raises the value added rubber farmers. "Hilirisasi is done so that farmers become export producers, not just in rubber suppliers at the upstream level," said Lukman, last February.
Although it has not had a significant impact on price improvement, but at least that restriction can reduce the pressure of the selling price decrease so as not to plummet too deep.
"AETS policy has become technical, no longer fundamental," said Chairman of Indonesian Rubber Industry Association (Gapkindo) Moenardji Soedargo to Katadata, Monday (2/4).
Referring to the International Rubber Consortium (IRCo), rubber SIR 20 touched the level of US $ 2.33 per kilogram early last year, then dropped to around US $ 1.46 in November 2017. However, when the AETS restriction policy began to be established in December 2017 until January 2018, admitted Moenardji prices began to move steadily.
The issue of trade war between the United States (US) and China also recorded has made the price pressured to reach US $ 1.52 per kg, where the price of rubber SIR 20 observed reached about US $ 1.46 on March 19, 2018. "Towards the end of March , the market is again depressed for commodities, "said Moenardji.
Meanwhile, the Director of the APEC and International Organization of Trade, Directorate General of International Trade Negotiations, Ministry of Trade, Deny Wachyudi Kurnia explained the evaluation of the three countries related to the implementation of AETS will be done after rubber price data out on April 15, 2018.
"We will evaluate the plan in May," he said.
In addition to price issues, many other conditions are also highlighted by the three countries. For example, in respect of each country's compliance with the achievement of the AETS objectives of preventing over-supply in the international market.
The restriction of rubber exports in AETS policy is also considered to have no effect on the welfare of farmers. Therefore, to increase the added value of natural rubber, farmers ask the government to issue a downstream policy or rubber processing industry in the country.
Chairman of the Association of Indonesian Rubber Farmers (APKI) Lukman Zakaria said the government should issue a policy that raises the value added rubber farmers. "Hilirisasi is done so that farmers become export producers, not just in rubber suppliers at the upstream level," said Lukman, last February.
Thursday, March 29, 2018
Rubber Price up 1%
Rubber prices managed to successfully close higher in trading today, Thursday (29/3/2018).
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 1% or 1.80 points to 182 yen per kilogram (kg).
Previously, the price of rubber opened in the red zone down 0.17% or 0.30 points at the level of 179.90 yen per kg.
On Wednesday's trade (28/3) rubber price for September 2018 contract finished up 0.61% or 1.10 points at the level of 180.20 yen per kilogram (kg).
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, a rally on the Nikkei following the impact of the weakening Japanese yen has pushed up rubber prices.
The Nikkei 225 index today closed up 0.61% or 127.77 points to 21,159.08, after posting a rebound as it opened up 1.04% or 219.65 points at 21,250.96.
Meanwhile, today's yen exchange rate was up 0.26% or 0.28 points to 106.57 yen per US dollar at 14.39 WIB.
"The Thai government's consideration of efforts to support prices is also a factor driving this commodity," Saito added, as quoted by Bloomberg.
Thai Vice Prime Minister Somkid Jatusripitak is reportedly instructing the agriculture and trade ministry and the Thai Rubber Authority to work with other key exporters to boost rubber prices.
On one occasion in Bangkok, Jatusripitak stated that the government is open to all options including buying rubber or stopping rubber tapping.
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 1% or 1.80 points to 182 yen per kilogram (kg).
Previously, the price of rubber opened in the red zone down 0.17% or 0.30 points at the level of 179.90 yen per kg.
On Wednesday's trade (28/3) rubber price for September 2018 contract finished up 0.61% or 1.10 points at the level of 180.20 yen per kilogram (kg).
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, a rally on the Nikkei following the impact of the weakening Japanese yen has pushed up rubber prices.
The Nikkei 225 index today closed up 0.61% or 127.77 points to 21,159.08, after posting a rebound as it opened up 1.04% or 219.65 points at 21,250.96.
Meanwhile, today's yen exchange rate was up 0.26% or 0.28 points to 106.57 yen per US dollar at 14.39 WIB.
"The Thai government's consideration of efforts to support prices is also a factor driving this commodity," Saito added, as quoted by Bloomberg.
Thai Vice Prime Minister Somkid Jatusripitak is reportedly instructing the agriculture and trade ministry and the Thai Rubber Authority to work with other key exporters to boost rubber prices.
On one occasion in Bangkok, Jatusripitak stated that the government is open to all options including buying rubber or stopping rubber tapping.
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