Rubber prices continued weakening in trading today, Wednesday (31/1/2018).
The price of rubber for delivery in July 2018 at Tokyo Commodity Exchange (Tocom) was down 1.43% or 2.80 points to 192.70 yen per kilogram (kg) at 10:47 am EDT.
Previously, the July rubber contract price opened with a weaker 0.15% or 0.3 points in 195.20 position after trading on Tuesday (30/1) closed down 1.31% or 2.60 points at 195.50 yen position.
Analysts from commodity broker Yutaka Shoji, Gu Jiong said the weakening of the Nikkei index and concerns about high rubber stocks put pressure on prices.
Today's Nikkei Index is observed to turn up 0.23% after slipping to 23,199 in early trading today.
China's rubber reserves monitored by the Shanghai Futures Exchange increased 0.9% last week to 419,310 tonnes, while Japan's rubber reserves increased 0.2% to 12,294 tonnes.
Meanwhile, the Japanese yen exchange rate was down 0.1% or 0.11 points to the level of 108.89 yen per US dollar at 11:04 pm.
Tuesday, January 30, 2018
Sunday, January 28, 2018
China's rubber reserves up, tocom break bellow 200
Rubber prices moved lower in trading today, Monday (29/1/2018) following the rise of China's rubber reserves.
The price of rubber for delivery in June 2018 on the Tokyo Commodity Exchange (Tocom), fell 2.64% or 5.4 points to 199.20 yen per kg at 10:52 pm.
Previously, June rubber contract price opened with a weakening 0.44% or 0.9 points at 204.60 position, after trading on Friday (26/1/2018) ended up 0.44% or 0.9 points at 204.60 position .
According to Gu Jiong, an analyst from commodity broker Yutaka Shoji, the weakening of rubber prices today is influenced by the increase of rubber reserves in China, which impact on the decrease of import demand.
According to Shanghai Futures Exchange data, China's rubber reserves rose 0.9% to 419.310 tons last week, the highest level since November 16, 2017.
Meanwhile, based on data from the Rubber Trade Association of Japan, rubber inventories in Japanese warehouses rose 0.2% to 12,294 metric tons on January 10, 2018 compared with levels achieved in the previous period.
Meanwhile, the Japanese yen exchange rate was down 0.11% or 0.12 points to the level of 108.7 yen per US dollar at 11:12 pm.
The price of rubber for delivery in June 2018 on the Tokyo Commodity Exchange (Tocom), fell 2.64% or 5.4 points to 199.20 yen per kg at 10:52 pm.
Previously, June rubber contract price opened with a weakening 0.44% or 0.9 points at 204.60 position, after trading on Friday (26/1/2018) ended up 0.44% or 0.9 points at 204.60 position .
According to Gu Jiong, an analyst from commodity broker Yutaka Shoji, the weakening of rubber prices today is influenced by the increase of rubber reserves in China, which impact on the decrease of import demand.
According to Shanghai Futures Exchange data, China's rubber reserves rose 0.9% to 419.310 tons last week, the highest level since November 16, 2017.
Meanwhile, based on data from the Rubber Trade Association of Japan, rubber inventories in Japanese warehouses rose 0.2% to 12,294 metric tons on January 10, 2018 compared with levels achieved in the previous period.
Meanwhile, the Japanese yen exchange rate was down 0.11% or 0.12 points to the level of 108.7 yen per US dollar at 11:12 pm.
Thursday, January 25, 2018
Yen Continues to Strengthen, Rubber Closes Weak
Rubber prices continued the correction on the third day in a row, Thursday (25/1/2018), following the strengthening of the yen and high reserves.
The price of rubber for delivery in June 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.2% or 0.40 points to 203.7 yen per kilogram (kg).
Previously, June rubber contract price opened stagnant at position 204.10 after trading Wednesday (24/1/2018) ended down 1.21% or 2.50 points at 204.10 position.
According to Kazunori Kokubo, Managing Director of Yutaka Shoji in Singapore, the rubber market has weighed on the abundance of rubber stock levels and the continued appreciation of the yen. The rubber stocks monitored by the Shanghai Futures Exchange reported up 2.6% to 415,415 tonnes last week.
Meanwhile, based on data from the Rubber Trade Association of Japan, rubber inventories in Japanese warehouses rose 14.4% to 12,267 tons as of December 31, 2017 compared to levels reached on December 20.
The yen appreciated 0.16 percent or 0.18 points to 109.04 per dollar, after trading on Wednesday (24/1) ending up 0.98 percent or 1.08 points at 109.22.
As is known, the movement of rubber prices is usually inversely proportional to the yen. 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.
"However, adjusting positions by some market participants over the closing term of the contract limits the weakening [rubber price]," Kokubo added, as quoted
The price of rubber for delivery in June 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.2% or 0.40 points to 203.7 yen per kilogram (kg).
Previously, June rubber contract price opened stagnant at position 204.10 after trading Wednesday (24/1/2018) ended down 1.21% or 2.50 points at 204.10 position.
According to Kazunori Kokubo, Managing Director of Yutaka Shoji in Singapore, the rubber market has weighed on the abundance of rubber stock levels and the continued appreciation of the yen. The rubber stocks monitored by the Shanghai Futures Exchange reported up 2.6% to 415,415 tonnes last week.
Meanwhile, based on data from the Rubber Trade Association of Japan, rubber inventories in Japanese warehouses rose 14.4% to 12,267 tons as of December 31, 2017 compared to levels reached on December 20.
The yen appreciated 0.16 percent or 0.18 points to 109.04 per dollar, after trading on Wednesday (24/1) ending up 0.98 percent or 1.08 points at 109.22.
As is known, the movement of rubber prices is usually inversely proportional to the yen. 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.
"However, adjusting positions by some market participants over the closing term of the contract limits the weakening [rubber price]," Kokubo added, as quoted
Wednesday, January 24, 2018
RUBBER-TOCOM extends declines, hits 1-month low on strong yen
Benchmark Tokyo rubber futures extended declines on Wednesday to hit a one-month low, weighed down by sluggish Shanghai futures and the yen's advance to its highest in four months, brokers said.
Against the yen , the dollar fell below the 110 threshold for the first time in four months. A stronger yen makes yen-denominated assets less affordable when purchased in other currencies. The Tokyo Commodity Exchange rubber contract for June delivery finished 2.5 yen lower at 204.1 yen ($1.85) per kg. Earlier in the session, it touched 203.9 yen, the lowest since Dec. 22.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 145 yuan to finish at 13,775 yuan ($2,155) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 150.70 U.S. cents per kg, down 0.3 cent.
Tuesday, January 23, 2018
Stock Still Abundant, Rubber Price Closed Weaken
Rubber prices closed lower from one percent in trading this morning, Wednesday (24/1/2018) following high levels of rubber stocks and the strengthening of the yen.
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.21% or 2.50 points to 204.10 yen per kilogram (kg).
Earlier June's June rubber open price fell 0.15% or 0.30 point at 206.30 after trading on Tuesday (23/1) ended down 1.24% or 2.60 points at 206.60.
Fujitomi's brokerage analyst in Tokyo, Kazuhiko Saito, said rubber prices weighed on negative sentiment coming from high levels of reserves in both China and Japan.
The rubber stocks monitored by the Shanghai Futures Exchange reported up 2.6% to 415,415 tonnes.
Meanwhile, based on data from the Rubber Trade Association of Japan, rubber inventories in Japanese warehouses rose 14.4% to 12,267 tons as of December 31, 2017 compared to levels reached on December 20.
The data includes warehouses in seven Japanese ports namely, Tokyo, Yokohama, Nagoya, Osaka, Kobe, Moji, and Hakata.
"In addition, the weakness in the Nikkei and the continued appreciation of the yen add negative factors to the rubber," added Saito, as quoted by Bloomberg.
The yen exchange rate was up 0.27% or 0.3 points to 110.01 per US dollar at 13.25 WIB, after opening with a thin depreciation of 0.01% or 0.01 point at 110.31.
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.21% or 2.50 points to 204.10 yen per kilogram (kg).
Earlier June's June rubber open price fell 0.15% or 0.30 point at 206.30 after trading on Tuesday (23/1) ended down 1.24% or 2.60 points at 206.60.
Fujitomi's brokerage analyst in Tokyo, Kazuhiko Saito, said rubber prices weighed on negative sentiment coming from high levels of reserves in both China and Japan.
The rubber stocks monitored by the Shanghai Futures Exchange reported up 2.6% to 415,415 tonnes.
Meanwhile, based on data from the Rubber Trade Association of Japan, rubber inventories in Japanese warehouses rose 14.4% to 12,267 tons as of December 31, 2017 compared to levels reached on December 20.
The data includes warehouses in seven Japanese ports namely, Tokyo, Yokohama, Nagoya, Osaka, Kobe, Moji, and Hakata.
"In addition, the weakness in the Nikkei and the continued appreciation of the yen add negative factors to the rubber," added Saito, as quoted by Bloomberg.
The yen exchange rate was up 0.27% or 0.3 points to 110.01 per US dollar at 13.25 WIB, after opening with a thin depreciation of 0.01% or 0.01 point at 110.31.
Monday, January 22, 2018
Rubber prices closed stagnant at the end of trading (22/1/2018)
Rubber prices closed stagnant at the end of trading today, Monday (22/1/2018).
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed unchanged at the level of 209.20 yen per kilogram (kg).
Previously, June's rubber contract price opened up 0.24% or 0.50 point at 209.70 after trading ended 1.32% or 2.80 points at 209.20 yen per kg .
Rubber prices had strengthened during trading following the weakening Japanese yen exchange rate. However, the strengthening of prices thinned until finally closed stagnant today.
According to Gu Jiong, an analyst at brokerage firm Yutaka Shoji, eroding appreciation of Japanese yen has supported the strengthening of rubber.
The yen today was down 0.09% or 0.1 point to 110.87 per US dollar at 13.42 WIB, after opening with appreciation 0.19% at 110.60.
"In addition, rubber prices also gain support from the steps of a number of producing countries to limit exports," he continued, as quoted by Bloomberg.
As previously reported, Indonesia, Thailand and Malaysia agreed to again cut rubber exports by 350,000 tons by March 2018 at a meeting in Bangkok, Thailand on December 22, 2017.
The three countries, which are members of the International Tripartite Rubber Council (ITRC), agreed to re-implement the Agreed Export Tonnage Scheme or rubber export restrictions in December to March 2018 to raise the price of these commodities.
In the step of export restrictions in question, Indonesia gets a portion of 95,190 tons, while Thailand 234,810 tons and Malaysia 20,000 tons.
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed unchanged at the level of 209.20 yen per kilogram (kg).
Previously, June's rubber contract price opened up 0.24% or 0.50 point at 209.70 after trading ended 1.32% or 2.80 points at 209.20 yen per kg .
Rubber prices had strengthened during trading following the weakening Japanese yen exchange rate. However, the strengthening of prices thinned until finally closed stagnant today.
According to Gu Jiong, an analyst at brokerage firm Yutaka Shoji, eroding appreciation of Japanese yen has supported the strengthening of rubber.
The yen today was down 0.09% or 0.1 point to 110.87 per US dollar at 13.42 WIB, after opening with appreciation 0.19% at 110.60.
"In addition, rubber prices also gain support from the steps of a number of producing countries to limit exports," he continued, as quoted by Bloomberg.
As previously reported, Indonesia, Thailand and Malaysia agreed to again cut rubber exports by 350,000 tons by March 2018 at a meeting in Bangkok, Thailand on December 22, 2017.
The three countries, which are members of the International Tripartite Rubber Council (ITRC), agreed to re-implement the Agreed Export Tonnage Scheme or rubber export restrictions in December to March 2018 to raise the price of these commodities.
In the step of export restrictions in question, Indonesia gets a portion of 95,190 tons, while Thailand 234,810 tons and Malaysia 20,000 tons.
Thursday, January 18, 2018
TOCOM snaps 2 days of losses on higher physical prices, yen drop
Benchmark Tokyo rubber futures rose on Thursday, snapping two days of losses, as higher physical prices in Thailand and a drop in the yen against the dollar lent support, dealers said.
"Higher offer prices by producers in Thailand also supported the market," said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co, noting that a reduction in exports by top producers may be having an effect.
In December, a group of three of the world's top natural rubber producers agreed to cut exports by up to 350,000 tonnes in total until March this year in a bid to address declining global prices.
The Tokyo Commodity Exchange (TOCOM) rubber contract for June delivery finished 2.5 yen, or 1.2%, higher at 212.0 yen (US$1.91) per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 35 yuan to finish at 14,165 yuan (US$2,205) per tonne.
The dollar rose 0.1% against the Japanese unit to 111.36 yen on Thursday, having bounced from Wednesday's four-month low of 110.19 yen.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 152.1 US cents per kg, down 0.5 cent.
Rubber Price Increases 1.38%
Rubber price rebounded in morning trading today, Thursday (18/1/2018) following the strengthening of the Japanese yen exchange rate
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), gained 1.38 percent or 2.90 points to 212.40 yen per kilogram (kg) at 10:47 pm.
Previously, June's rubber contract price opened with a 0.05% decline or 0.1 point to 209.40 level after trading Wednesday (17/1 /) ended down 1.6% or 3.4 points to 209.50 yen pos kg.
Analysts at Sunward Trading's commodity brokerage Hideshi Matsunaga said rubber prices rebounded as the yen exchange rate against the US dollar weakened spurring investor interest in buying back.
"However, the strengthening is still limited because there are still concerns about the increase in rubber supply," he said, as quoted by Bloombeeg.
Previously, the Japan Rubber Trading Association reported Japan's rubber reserves increased 14.4% to 12,267 tons. The Chinese rubber stocks monitored by the Shanghai Futures Exchange increased to 405,040 tonnes last week, the highest since November 16.
Rubber prices weakened even at the same time the performance of the yen weakened. The yen today depreciated 0.12% or 0.13 points to the 111.42 level per US dollar at
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), gained 1.38 percent or 2.90 points to 212.40 yen per kilogram (kg) at 10:47 pm.
Previously, June's rubber contract price opened with a 0.05% decline or 0.1 point to 209.40 level after trading Wednesday (17/1 /) ended down 1.6% or 3.4 points to 209.50 yen pos kg.
Analysts at Sunward Trading's commodity brokerage Hideshi Matsunaga said rubber prices rebounded as the yen exchange rate against the US dollar weakened spurring investor interest in buying back.
"However, the strengthening is still limited because there are still concerns about the increase in rubber supply," he said, as quoted by Bloombeeg.
Previously, the Japan Rubber Trading Association reported Japan's rubber reserves increased 14.4% to 12,267 tons. The Chinese rubber stocks monitored by the Shanghai Futures Exchange increased to 405,040 tonnes last week, the highest since November 16.
Rubber prices weakened even at the same time the performance of the yen weakened. The yen today depreciated 0.12% or 0.13 points to the 111.42 level per US dollar at
Tuesday, January 16, 2018
High Supply of Raw Material, Rubber Weakens 1.27%
Rubber prices moved lower on the second day of trading in a row, Wednesday (17/1/2018).
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), fell 1.27% or 2.70 points to 214 yen per kilogram (kg) at 10,37 WIB.
Previously, June's rubber contract price opened with a weakening of 0.05% or 0.10 points at 212.80 level after trading on Tuesday (16/1) ended down 0.88% at 212.90 position.
Analysts from commodity broker Yutaka Shoji, Gu Jiong said concerns over an increase in rubber stocks gave negative sentiment to rubber prices.
"Raw material is currently abundant because farmers in Thailand continue to wiretap and still export rubber," he said, as quoted by Bloomberg.
Based on data from the Japan Rubber Trade Association, Japan's rubber reserves increased 14.4% to 12,267 tons. The Chinese rubber stocks monitored by the Shanghai Futures Exchange increased to 405,040 tonnes last week, the highest since November 16.
Rubber prices weakened even at the same time the performance of the yen weakened. The yen today depreciated 0.15% or 0.17 points to as low as 110.62 per US dollar at 11:01 pm.
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), fell 1.27% or 2.70 points to 214 yen per kilogram (kg) at 10,37 WIB.
Previously, June's rubber contract price opened with a weakening of 0.05% or 0.10 points at 212.80 level after trading on Tuesday (16/1) ended down 0.88% at 212.90 position.
Analysts from commodity broker Yutaka Shoji, Gu Jiong said concerns over an increase in rubber stocks gave negative sentiment to rubber prices.
"Raw material is currently abundant because farmers in Thailand continue to wiretap and still export rubber," he said, as quoted by Bloomberg.
Based on data from the Japan Rubber Trade Association, Japan's rubber reserves increased 14.4% to 12,267 tons. The Chinese rubber stocks monitored by the Shanghai Futures Exchange increased to 405,040 tonnes last week, the highest since November 16.
Rubber prices weakened even at the same time the performance of the yen weakened. The yen today depreciated 0.15% or 0.17 points to as low as 110.62 per US dollar at 11:01 pm.
Rubber Prices Dropped Post-Rally Two Days
Rubber prices slipped into the red zone at the end of trading today, Tuesday (16/1/2018), after being able to record sharp gains for two consecutive days before.
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.88% or 1.90 points at 212.90 yen per kilogram (kg).
Previously, June's rubber contract price opened with a slight increase of 0.05% or 0.10 point at 214.90, after trading Monday (15/1) ended up 2.04% at 214.80 position.
JSC analyst Takaki Shigemoto expressed concerns that rising tire raw material prices in recent days could trigger a fall in demand from investors.
"This will cause the inventory of rubber stocks will continue to increase," said Shigemoto, as quoted by Bloomberg.
Based on data from the Japan Rubber Trade Association, Japan's rubber reserves increased 14.4% to 12,267 tons. The Chinese rubber stocks monitored by the Shanghai Futures Exchange increased to 405,040 tons last week, the highest level since November 16.
Rubber prices weakened even at the same time the performance of the yen weakened. The observed yen depreciated 0.25% or 0.28 points to 110.82 per dollar at 13.49 pm, after Monday (15/1) ended up 0.46% at 110.54.
In line with rubber, Brent oil price is currently down 0.38% or 0.27 points to US $ 69.99 per barrel at 13.40 WIB, after breaking the 70 level at the end of trading yesterday.
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.88% or 1.90 points at 212.90 yen per kilogram (kg).
Previously, June's rubber contract price opened with a slight increase of 0.05% or 0.10 point at 214.90, after trading Monday (15/1) ended up 2.04% at 214.80 position.
JSC analyst Takaki Shigemoto expressed concerns that rising tire raw material prices in recent days could trigger a fall in demand from investors.
"This will cause the inventory of rubber stocks will continue to increase," said Shigemoto, as quoted by Bloomberg.
Based on data from the Japan Rubber Trade Association, Japan's rubber reserves increased 14.4% to 12,267 tons. The Chinese rubber stocks monitored by the Shanghai Futures Exchange increased to 405,040 tons last week, the highest level since November 16.
Rubber prices weakened even at the same time the performance of the yen weakened. The observed yen depreciated 0.25% or 0.28 points to 110.82 per dollar at 13.49 pm, after Monday (15/1) ended up 0.46% at 110.54.
In line with rubber, Brent oil price is currently down 0.38% or 0.27 points to US $ 69.99 per barrel at 13.40 WIB, after breaking the 70 level at the end of trading yesterday.
Monday, January 15, 2018
RUBBER-TOCOM hits 3-1/2-month high on stronger Shanghai futures
Benchmark Tokyo rubber futures hit a 3-1/2-month high on Monday, backed by higher Shanghai futures which helped offset a stronger yen against the U.S. dollar.
"There were no fresh fundamental news that triggered buying, but investors may have stepped up investing as rubber prices tend to rise in January ahead of China's Lunar New Year," said Jiong Gu, analyst, Yutaka Shoji Co.
The Tokyo Commodity Exchange (TOCOM) rubber contract for June delivery finished up 4.3 yen, or 2.0 percent, at 214.8 yen ($1.94) per kg. Earlier in the session, it touched its highest since Sept. 28 of 215.0 yen.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 135 yuan to finish at 14,445 yuan ($2,247) per tonne.
The rally came despite a stronger yen which makes yen-denominated assets less affordable when purchased in other currencies.
The dollar slipped to its lowest since mid-September against the yen, as comments from the head of the Bank of Japan highlighted Japan's economic recovery. "The TOCOM's rally may be short-lived as the rubber market is not fundamentally strong," Gu said.
The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 153.9 U.S. cents per kg, up 3.2 cents.
Thailand Production Start in Low Season, Rubber Price Stronger 1.95%
Rubber prices rose nearly 2% in trading this morning, Monday (15/1/2018).
The price of rubber for delivery in June 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 1.95 percent, or 4.1 points, to 214.60 yen per kilogram (kg) at 1040 GMT.
Previously, June's rubber contract price opened with a 0.19% rise or 0.40 point at 210.9, after trading on Friday (12/1) ended up 1.74% at 210.50.
According to Kazuhiko Saito, an analyst at commodity brokerage firm Fujitomi, rubber prices are driven by investor concerns ahead of a low season of production in Thailand.
"Investors are cautious in the sale of rubber futures contracts," he said as quoted by Bloomberg.
Reported by Bloomberg, winter in Thailand usually begins in February. At that time, the rubber trees had fallen and the farmers stopped wiretapping.
Rubber prices are able to strengthen even at the same time appreciation of yen currency performance continues. The yen today is observed to rise 0.3 points or 0.27% to 110.76 per dollar at 10:05 pm.
The price of rubber for delivery in June 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 1.95 percent, or 4.1 points, to 214.60 yen per kilogram (kg) at 1040 GMT.
Previously, June's rubber contract price opened with a 0.19% rise or 0.40 point at 210.9, after trading on Friday (12/1) ended up 1.74% at 210.50.
According to Kazuhiko Saito, an analyst at commodity brokerage firm Fujitomi, rubber prices are driven by investor concerns ahead of a low season of production in Thailand.
"Investors are cautious in the sale of rubber futures contracts," he said as quoted by Bloomberg.
Reported by Bloomberg, winter in Thailand usually begins in February. At that time, the rubber trees had fallen and the farmers stopped wiretapping.
Rubber prices are able to strengthen even at the same time appreciation of yen currency performance continues. The yen today is observed to rise 0.3 points or 0.27% to 110.76 per dollar at 10:05 pm.
Sunday, January 14, 2018
China's oil product export surge shows risks to OPEC's gains
The standout feature of China's crude oil and product trade data for December was the surge in exports of refined fuels to a record, but it already appears that this dynamic may not be sustainable.
China shipped out 6.17 million tonnes of refined products in December, equivalent to about 1.6 million barrels per day (bpd), using the BP conversion factor of 8 barrels of product per tonne.
This was up 6.6 percent from November's 5.79 million tonnes, and took the total for the year to 52.16 million tonnes, equivalent to about 1.14 million bpd.
The strength in December's exports of products, which include gasoline, diesel and jet fuel, was most likely a reflection of strong crude imports in November, when 9.01 million bpd were brought in, the second highest on record.
The glut of crude available to Chinese refiners in November and December was also coupled with still strong margins for products across Asia.
The profit for processing a barrel of Dubai crude at a refinery in Singapore averaged $7.17 in December, according to Reuters data.
This was above the current moving 365-day average of $7.05 a barrel, although it was down from a 2017 peak of $9.07 for the month of September.
This meant that Chinese refiners were able to take advantage of strong prices for products in December, while processing crude oil that was most likely bought in October, when the price of Middle East benchmark Oman crude was still around $55 a barrel.
But this dynamic has shifted fairly dramatically in recent weeks, with crude prices surging and refining margins dropping.
Oman crude futures ended at $67.10 a barrel on Jan. 12, the highest in just over three years, while the refinery margin dropped to $5.85 a barrel, close to the lowest since May last year.
Crude prices and refinery margins have an inverse relationship, with the profit from producing fuels tending to peak in the weeks after crude prices reach lows.
For example, when the refinery profits reached their 2017 peak of $11.01 a barrel on Sept. 1, it was about six weeks after Oman futures recorded their closing low for the year of $43.47 on June 21.
CHINA'S INDEPENDENT REFINERS ARE KEY
The sharp jump in crude benchmarks in recent weeks may well be a reflection of the market view that the Organization of the Petroleum Exporting Countries (OPEC) and its allies in the deal to cut output are successfully tightening the market.
But higher crude prices undermine the profitability of their refinery customers, thus making it more likely that output will decline, at least to the point where inventories of refined fuels are low enough to cause their prices to rise, thus restoring margins.
For Chinese refiners, the trick is to work out whether it's still worth importing crude for processing into fuels for exports.
In some ways the current market dynamic in Asia is an exercise in working out which of the refiners who export product have the most efficient plants, and can therefore withstand lower product margins.
While the major, state-owned refiners in China operate new generation units, it's likely that the smaller, independent refiners may struggle to compete on level terms with their larger domestic counterparts, and also efficient large-scale export refineries in other parts of Asia, such as those in Singapore or India's west coast.
Given that smaller refiners were behind much of the gain in China's crude imports in 2017, any sign that they may pull back on purchases would be bearish for crude imports.
Independent refiners, sometimes referred to as teapots, imported about 70.5 million tonnes of crude in 2017, up from 42.1 million in 2016, according to data compiled by Thomson Reuters Oil Research and Forecasts.
This means that the independent refiners imported about 568,000 bpd more last year than they did in 2016, accounting for much of China's overall increase in crude imports of about 800,000 bpd.
In some ways China's independent refiners have become the single most important driver of overall global crude demand growth, meaning their health becomes of increasing importance.
The current expectation is that these refiners will continue to import more crude, given the authorities in Beijing appear to be enabling this by granting them quotas to buy foreign oil directly.
But ultimately, what will determine if this turns out to be the case is whether China's independent refiners can compete domestically and regionally with the bigger players.
Friday, January 12, 2018
TOCOM ends higher in line with Shanghai
Benchmark Tokyo rubber futures ended 1.7% higher on Friday, in line with a firm Shanghai market that got support from government data showing a rise in monthly imports by the world's top consumer, brokers said.
Preliminary government data showed China imported 840,000 tonnes of natural and synthetic rubber in December, up 15.1% from a year earlier.
The Tokyo Commodity Exchange rubber contract for June delivery finished 3.6 yen higher at 210.5 yen (US$1.89) per kg after hitting 211 yen earlier, the highest since Dec 28. For the week, the contract gained 2.8%.
The most active rubber contract on the Shanghai futures exchange for May delivery rose 175 yuan to finish at 14,295 yuan (US$2,210) per tonne.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 2.1% from last Friday, the exchange said on Friday.
The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 151.00 U.S. cents per kg, up 0.5 cent.
Thursday, January 11, 2018
Rubber Price Rebound Driven Global Growth Optimism
Rubber prices rebounded and rose more than 1% in trading this morning, Friday (12/1/2018), driven by optimism around global growth.
The price of rubber for delivery in June 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 1.64 percent, or 3.40 points, to 210.30 yen per kilogram (kg) at 10:27 pm.
Previously, June's rubber contract price opened with only 0.05% increase or 0.10 point at 207 level, after trading on Thursday (11/1) ended down 0.24% at position 206.90.
According to Takaki Shigemoto, an analyst at research firm JSC, rubber prices are fueled by optimism about global growth and demand from tire manufacturers.
"Thus, investor interest is encouraged to the rubber market," he added, as quoted from Bloomberg.
China's automotive sales performance in 2018 is expected to rise 3% to around 30 million units by 2018, according to the China Association of Automobile Manufacturers. Meanwhile, passenger vehicle sales in India reportedly rose 5.2% (y-o-y) to 239,712 units in December 2017.
On the other hand, China's economy is expected to grow around 6.9% by 2017, accelerating from its lowest level in 26 years recorded in the previous year.
According to Chinese Prime Minister Li Keqiang, China's economy has maintained a steady and good trend last year, with an overall better-than-expected situation.
Rubber prices are able to rebound although at the same time appreciation of yen currency performance continues. The yen today tracked 0.01 points, or 0.01%, to 111.25 per dollar at 10:33 am, after ending up 0.16% at 111.26 on Thursday. .
The price of rubber for delivery in June 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 1.64 percent, or 3.40 points, to 210.30 yen per kilogram (kg) at 10:27 pm.
Previously, June's rubber contract price opened with only 0.05% increase or 0.10 point at 207 level, after trading on Thursday (11/1) ended down 0.24% at position 206.90.
According to Takaki Shigemoto, an analyst at research firm JSC, rubber prices are fueled by optimism about global growth and demand from tire manufacturers.
"Thus, investor interest is encouraged to the rubber market," he added, as quoted from Bloomberg.
China's automotive sales performance in 2018 is expected to rise 3% to around 30 million units by 2018, according to the China Association of Automobile Manufacturers. Meanwhile, passenger vehicle sales in India reportedly rose 5.2% (y-o-y) to 239,712 units in December 2017.
On the other hand, China's economy is expected to grow around 6.9% by 2017, accelerating from its lowest level in 26 years recorded in the previous year.
According to Chinese Prime Minister Li Keqiang, China's economy has maintained a steady and good trend last year, with an overall better-than-expected situation.
Rubber prices are able to rebound although at the same time appreciation of yen currency performance continues. The yen today tracked 0.01 points, or 0.01%, to 111.25 per dollar at 10:33 am, after ending up 0.16% at 111.26 on Thursday. .
TOCOM cuts losses by close on US dollar recovery
Benchmark Tokyo rubber futures edged down 0.2% by the close on Thursday, trimming losses as the dollar edged higher against the yen from a six-week low hit a day earlier, brokers said.
The Tokyo Commodity Exchange rubber contract for June delivery finished 0.5 yen lower at 206.9 yen (US$1.85) per kg.
Crude rubber inventories at Japanese ports stood at 10,739 tonnes as of Dec. 20, up 10.3% from the last inventory date, data from the Rubber Trade Association of Japan showed on Thursday.
The dollar edged higher against the yen on Thursday after comments by China's foreign exchange regulator eased concerns that China may reduce its buying of US government bonds.
The TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, also got support from marginal gains in Shanghai futures.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 65 yuan to finish at 14,170 yuan (US$2,176) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 148.70 US cents per kg, up 0.7 cent.
Wednesday, January 10, 2018
Rubber Price Depressed as Yen Strengthen
Rubber price movements weakened in trading this morning, Thursday (11/1/2018), due to depressed effects appreciation of Japanese yen exchange rate.
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), fell 0.48% or 1 point to as low as 206.40 yen per kilogram (kg) at 1040 GMT.
Earlier, the June contract price opened down 0.34% or 0.70 points at 206.70, after trading on Wednesday (10/1) ended up 0.73% at 207.40.
"The stronger yen is the biggest pressure on the rubber market in Tokyo," said Gu Jiong, a brokers analyst at Yutaka Shoji, as quoted by Bloomberg.
At the end of trading Wednesday (10/1), yen exchange rate movements ended up 1.21 points or 1.07% at 111.44 position per US dollar. The yen even reportedly touched 111.27 per dollar yesterday, the strongest level since Nov. 28.
Nevertheless, the yen exchange rate today observed weakened 0.25 points or 0.22% to 111.69 per US dollar at 10:49 pm, after it opened stagnant at 111.44 position.
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.
Meanwhile, the West Texas Intermediate oil price rally for delivery in February 2018 was observed stalled today, down 0.16% or 0.10 points to US $ 63.47 per barrel at 10:39 pm.
In late trading on Wednesday, West Texas Intermediate oil for February delivery gained 0.97 percent, or 0.61 points, at $ 63.57 a barrel on the New York Mercantile Exchange.
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), fell 0.48% or 1 point to as low as 206.40 yen per kilogram (kg) at 1040 GMT.
Earlier, the June contract price opened down 0.34% or 0.70 points at 206.70, after trading on Wednesday (10/1) ended up 0.73% at 207.40.
"The stronger yen is the biggest pressure on the rubber market in Tokyo," said Gu Jiong, a brokers analyst at Yutaka Shoji, as quoted by Bloomberg.
At the end of trading Wednesday (10/1), yen exchange rate movements ended up 1.21 points or 1.07% at 111.44 position per US dollar. The yen even reportedly touched 111.27 per dollar yesterday, the strongest level since Nov. 28.
Nevertheless, the yen exchange rate today observed weakened 0.25 points or 0.22% to 111.69 per US dollar at 10:49 pm, after it opened stagnant at 111.44 position.
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.
Meanwhile, the West Texas Intermediate oil price rally for delivery in February 2018 was observed stalled today, down 0.16% or 0.10 points to US $ 63.47 per barrel at 10:39 pm.
In late trading on Wednesday, West Texas Intermediate oil for February delivery gained 0.97 percent, or 0.61 points, at $ 63.57 a barrel on the New York Mercantile Exchange.
TOCOM hits near 2-week high before paring gains
Benchmark Tokyo rubber futures hit their highest in nearly two weeks on Wednesday on the back of oil's rise to the highest since 2014, before paring gains on the yen's advance against the dollar and sluggish Shanghai futures, brokers said.
Rubber prices have not gotten much support from a coordinated producers' curb in output. A group of three of the world's top natural rubber producers will cut exports by up to 350,000 tonnes in total until March, the Thai agriculture ministry said late last month.
Oil prices hit their highest levels since 2014 on Wednesday due to ongoing production cuts led by OPEC as well as healthy demand.
The dollar extended losses against the yen after the Bank of Japan's move to trim Japanese government bond (JGB) purchases in the previous session triggered speculation that it could begin tapering its massive, ultra-easy monetary stimulus.
The Tokyo Commodity Exchange rubber contract for June delivery finished 1.5 yen higher at 207.4 yen (US$1.85) per kg after touching its highest since Dec. 29 at 208.1 yen.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 60 yuan to finish at 14,035 yuan (US$2,151) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 148.30 US cents per kg, up 0.5 cent.
Tuesday, January 9, 2018
Rubber Price Stronger, Following higher WTI
Rubber prices strengthened in trading this morning, Wednesday (10/1/2018), in line with the continuation of the crude oil price rally.
The June rubber price movement for delivery in June 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 0.53 percent, or 1.10 points, to 207 yen per kilogram (kg) at 10:25 pm.
Previously, June's rubber contract price opened with a 0.10% rise or 0.20 point at 206.10, after trading Monday (9/1) ended up 0.54% at 205.90.
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, a rally on oil boosted speculation that the price of synthetic rubber will rise.
"Thus, the purchase by investors was encouraged," he added, as quoted from Bloomberg.
The price of West Texas Intermediate oil for February delivery was up 0.78% or 0.49 points to US $ 63.45 per barrel at 10:21 AM, after trading on Tuesday (9/1) ended up 1.99% at position 62.96.
Oil prices continued to strengthen this morning after the American Petroleum Institute (API) reported US oil inventories fell 11.2 million barrels last week.
That figure is almost three times the forecast in a Bloomberg survey and will be the biggest decline since 1999, if the Energy Information Administration data released today (Wednesday, 10/1) show the same thing.
Rubber prices are able to continue to strengthen even as the yen appreciation continues. The yen continued to appreciate 0.33% or 0.37 points to 112.28 per US dollar at 10:31 am, after on Tuesday (9/1) ended up 0.39% at 112.65.
The June rubber price movement for delivery in June 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 0.53 percent, or 1.10 points, to 207 yen per kilogram (kg) at 10:25 pm.
Previously, June's rubber contract price opened with a 0.10% rise or 0.20 point at 206.10, after trading Monday (9/1) ended up 0.54% at 205.90.
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, a rally on oil boosted speculation that the price of synthetic rubber will rise.
"Thus, the purchase by investors was encouraged," he added, as quoted from Bloomberg.
The price of West Texas Intermediate oil for February delivery was up 0.78% or 0.49 points to US $ 63.45 per barrel at 10:21 AM, after trading on Tuesday (9/1) ended up 1.99% at position 62.96.
Oil prices continued to strengthen this morning after the American Petroleum Institute (API) reported US oil inventories fell 11.2 million barrels last week.
That figure is almost three times the forecast in a Bloomberg survey and will be the biggest decline since 1999, if the Energy Information Administration data released today (Wednesday, 10/1) show the same thing.
Rubber prices are able to continue to strengthen even as the yen appreciation continues. The yen continued to appreciate 0.33% or 0.37 points to 112.28 per US dollar at 10:31 am, after on Tuesday (9/1) ended up 0.39% at 112.65.
TOCOM climbs on firmer oil, Shanghai futures
Benchmark Tokyo rubber futures rose on Tuesday, in line with firm oil prices and Shanghai futures, brokers said.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, recovered after hitting 204 yen on Friday, the lowest since Dec. 22.
Japanese markets were closed on Monday for a national holiday.
The Tokyo Commodity Exchange rubber contract for June delivery finished 1.1 yen, 0.5%, higher at 205.9 yen (US$1.83) per kg.
US oil prices hit their highest since 2015 again on Tuesday as speculators bet on further price rises amid OPEC-led production cuts and a dip in American drilling activity, though some warned the rally could run out of steam.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 40 yuan to finish at 14,075 yuan (US$2,164) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 146.50 US cents per kg, up 0.5 cent.
Monday, January 8, 2018
WTI Oil Rally, Rubber Price Rises
Rubber prices move in positive territory in trading this morning, Tuesday (9/1/2018), the first trade post long holiday weekend, in line with the strengthening of crude oil prices.
The June rubber price movement for delivery in June 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 0.29% or 0.60 points to 205.40 yen per kilogram (kg) at 10:26 pm.
Previously, June's rubber contract price opened with a gain of 0.34% or 0.70 points at 205.50 level, after the last trading before the long weekend on Friday ended down 1.01% at 204.80 position.
According to Takaki Shigemoto, an analyst at research company JSC, the oil rally prompted speculation about the potential rise in prices of synthetic rubber.
The price of West Texas Intermediate oil for February delivery was up 0.81 percent or 0.50 points to US $ 62.23 per barrel at 10:22 pm, after trading on Monday (8/1) ended up 0.47 percent in position 61.73.
Oil prices extended gains above $ 62 a barrel in line with an expected decline in US crude stockpiles.
"However, an increase in the amount of stock in China limits the gains in the rubber market," Shigemoto added, as quoted by Bloomberg.
According to data from Shanghai Futures Exchange (SHFE), the number of rubber stocks rose 3.5% to 396,857 tons last week, an increase in the sixth week.
On the other hand, the yen appreciated to rise 0.38% or 0.43 points to 112.66 per dollar as of 1032 GMT, after Monday (8/1) ended up depreciating 0.03% thin at 113, 09
The June rubber price movement for delivery in June 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 0.29% or 0.60 points to 205.40 yen per kilogram (kg) at 10:26 pm.
Previously, June's rubber contract price opened with a gain of 0.34% or 0.70 points at 205.50 level, after the last trading before the long weekend on Friday ended down 1.01% at 204.80 position.
According to Takaki Shigemoto, an analyst at research company JSC, the oil rally prompted speculation about the potential rise in prices of synthetic rubber.
The price of West Texas Intermediate oil for February delivery was up 0.81 percent or 0.50 points to US $ 62.23 per barrel at 10:22 pm, after trading on Monday (8/1) ended up 0.47 percent in position 61.73.
Oil prices extended gains above $ 62 a barrel in line with an expected decline in US crude stockpiles.
"However, an increase in the amount of stock in China limits the gains in the rubber market," Shigemoto added, as quoted by Bloomberg.
According to data from Shanghai Futures Exchange (SHFE), the number of rubber stocks rose 3.5% to 396,857 tons last week, an increase in the sixth week.
On the other hand, the yen appreciated to rise 0.38% or 0.43 points to 112.66 per dollar as of 1032 GMT, after Monday (8/1) ended up depreciating 0.03% thin at 113, 09
Friday, January 5, 2018
TOCOM hits 2-week low on profit-taking ahead of long weekend
Benchmark Tokyo rubber futures dipped to a two-week low on Friday, ending the first week of the new year with a nearly 1% decline, as investors took profits ahead of a long weekend in Japan.
Japanese markets will be closed on Monday for a national holiday.
The Tokyo Commodity Exchange (TOCOM) rubber contract for June delivery finished 2.1 yen, or 1.0%, lower at 204.8 yen (US$1.81) per kg, after touching the lowest since Dec. 22 at 204.0 yen earlier in the session.
For the week, it shed 0.9%.
"There was no fresh news, but investors booked profits after a rally late last year," said Toshitaka Tazawa, an analyst with commodities broker Fujitomi Co.
"I expect the market to move higher later this month toward the recent high of 213.8 yen as it seasonally tends to rally ahead of the Lunar New Year holiday in China," he said.
The most-active rubber contract on the Shanghai futures exchange for May delivery slid 5 yuan to finish at 14,090 yuan (US$2,173) per tonne.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 3.5% from last Friday, the exchange said on Friday.
The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 145.2 US cents per kg, down 0.4 cents.
Investor Selling Action ahead of Holiday Long Weekend, Make Rubber Price Lower
Rubber prices moved lower in trading this morning, Friday (5/1/2018), as investors prepare for a long holiday weekend which is the coming of age day or day of maturity.
The Day of Maturity is an official holiday in Japan that falls on Monday the second week in January.
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), was down 0.77% or 1.60 points at 205.30 yen per kilogram (kg) at 10:35 pm.
Previously, June rubber futures opened up 0.05% or 0.1 point at 208.00 level, after the previous trading session on Thursday (4/1), the rubber ended up 0.1% or 0.2 point to the level of 206 , 9 yen per kg.
Naohiro Niimura from Market Risk Advisory said the weakening of rubber prices was triggered by investors selling ahead of the long weekend holiday in Japan.
"Investors are still worried that China will tighten its monetary policy, triggering pressure on demand," said Niimura, as quoted by Bloomberg.
Rubber prices weakened as the yen was also down 0.09% or 0.1 point to 112.85 per US dollar at 11:22 pm
The Day of Maturity is an official holiday in Japan that falls on Monday the second week in January.
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), was down 0.77% or 1.60 points at 205.30 yen per kilogram (kg) at 10:35 pm.
Previously, June rubber futures opened up 0.05% or 0.1 point at 208.00 level, after the previous trading session on Thursday (4/1), the rubber ended up 0.1% or 0.2 point to the level of 206 , 9 yen per kg.
Naohiro Niimura from Market Risk Advisory said the weakening of rubber prices was triggered by investors selling ahead of the long weekend holiday in Japan.
"Investors are still worried that China will tighten its monetary policy, triggering pressure on demand," said Niimura, as quoted by Bloomberg.
Rubber prices weakened as the yen was also down 0.09% or 0.1 point to 112.85 per US dollar at 11:22 pm
NR markets finish 2017 with a whimper
Natural rubber (NR) prices remained weak in the final month of 2017, despite some signs of recovery just prior to the new year.
On the Shanghai Futures Exchange, prices for RU1805 – the most heavily traded NR future – stood at Yuan14,105/tonne on 29 Dec.
This was significantly lower the Yuan14,525/tonne recorded at the beginning of the last month.
On TOCOM, back-month prices for RSS3 materials eased back to ¥206.7/kg on 29 Dec, having spiked to ¥211.8 two days earlier.
Overall, though, RSS3 prices registered a month-on-month improvement on the Tokyo exchange – up from ¥199.5/kg on 30 Nov.
In Bangkok, spot prices for RSS1 grades on 14 Dec stood at at $163.25/100kg, 17% up compared to 160.40/100kg on 30 Nov
Prices were only available up to 14 Dec for the Thai futures exchange, with RSS3 closing at 159.70/100kg, 18% up from $156.85 at the end of Nov.
In Kuala Lumpur, prices for SMR-20 were up 6% at $145.25/100kg on 29 Dec, compared to end of November, although they dropped from a high of $147.30/100kg on 27 Dec.
Latex performed less well in KL, closing 2.7% down at 115.60/kg on 29 Dec, compared to $118.90/100kg on 30 Nov.
NR prices are, however, expected to strengthen with a recent measure by Indonesia, Malaysia and Thailand to cut exports by 350,000 tonnes between 22 Dec and 31 March.
In addition, the beginning of wintering season and the subsequent lower production levels could also help to push up prices.
Rubber Prices End Lower on Long Weekend
Rubber was unable to extend its gains and ended in negative territory in trading today, Friday (5/1/2018), depressed investors selling ahead of the long weekend holiday.
The June rubber price movement for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.01% or 2.10 points at 204.80 yen per kilogram (kg).
Previously, June's rubber contract price opened with a slight increase of 0.05% or 0.10 points at 207, after trading on Thursday (4/1) was able to book a 0.1% rebound or 0.20 point at 206.90 yen kg.
Naohiro Niimura from Market Risk Advisory research firm said the weakening of rubber prices was triggered by investors selling ahead of the coming day or maturity day. Maturity Day is an official holiday in Japan that falls on Monday of the second week in January.
"Investors are still worried that China will tighten its monetary policy, triggering pressure on demand," said Niimura, as quoted by Bloomberg.
In December 2017, China's central bank raised borrowing costs after the US central bank decided to tighten its monetary policy.
"With only a five basis point increase, the central bank [China] does not want to endanger the market with an aggressive rise. This shows a tightening bias of policy makers and this attitude will continue in 2018, "said Raymond Yeung, China's chief economist at Australia & New Zealand Banking Group Ltd.
In line with rubber, West Texas Intermediate oil prices for February delivery in 2018 slipped into the red zone with a weakening 0.27% or 0.17 points to as low as US $ 61.84 per barrel at 14.15 WIB, after trading on Thursday (4/1) ) ended up 0.62% at 62.01.
Rubber prices sagged although at the same time the performance of the Japanese yen continued to weaken. The yen continued to appreciate 0.28% or 0.32 points to 113.07 per US dollar at 14.23 WIB, after Thursday (4/1) ended down 0.21% at 112.75.
The June rubber price movement for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 1.01% or 2.10 points at 204.80 yen per kilogram (kg).
Previously, June's rubber contract price opened with a slight increase of 0.05% or 0.10 points at 207, after trading on Thursday (4/1) was able to book a 0.1% rebound or 0.20 point at 206.90 yen kg.
Naohiro Niimura from Market Risk Advisory research firm said the weakening of rubber prices was triggered by investors selling ahead of the coming day or maturity day. Maturity Day is an official holiday in Japan that falls on Monday of the second week in January.
"Investors are still worried that China will tighten its monetary policy, triggering pressure on demand," said Niimura, as quoted by Bloomberg.
In December 2017, China's central bank raised borrowing costs after the US central bank decided to tighten its monetary policy.
"With only a five basis point increase, the central bank [China] does not want to endanger the market with an aggressive rise. This shows a tightening bias of policy makers and this attitude will continue in 2018, "said Raymond Yeung, China's chief economist at Australia & New Zealand Banking Group Ltd.
In line with rubber, West Texas Intermediate oil prices for February delivery in 2018 slipped into the red zone with a weakening 0.27% or 0.17 points to as low as US $ 61.84 per barrel at 14.15 WIB, after trading on Thursday (4/1) ) ended up 0.62% at 62.01.
Rubber prices sagged although at the same time the performance of the Japanese yen continued to weaken. The yen continued to appreciate 0.28% or 0.32 points to 113.07 per US dollar at 14.23 WIB, after Thursday (4/1) ended down 0.21% at 112.75.
Wednesday, January 3, 2018
First Trade of 2018, Rubber Price Is Stronger 0.05%
Rubber prices on the Japanese commodity bourse moved higher in early trading in 2018 after the New Year holiday on Thursday (4/1/2018).
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), was observed to rise 0.05% or 0.1 point at 206.80 yen per kg at 10:44 pm.
Previously, the May rubber futures contract opened up 0.19% or 0.4 points at 207.10, after the last trading in 2017 on Friday (29/12), the rubber ended down 1.38% or 2.9 points to the level 206.7 yen per kg.
According to Naohiro Niimura, a parent in Market Risk Advisory, positive sentiment from the stock market as well as rising crude oil prices are driving rubber prices today.
"The sentiment towards the rubber market is getting more positive following the optimism about rising demand from China," said Niimura, as quoted by Bloomberg.
However, Niimura added, the downside risk in the next three months still exists because China is expected to tighten its monetary policy.
Supporting rubber prices, the yen was down 0.11 percent or 0.12 points to 112.63 per dollar at 11:51 pm.
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), was observed to rise 0.05% or 0.1 point at 206.80 yen per kg at 10:44 pm.
Previously, the May rubber futures contract opened up 0.19% or 0.4 points at 207.10, after the last trading in 2017 on Friday (29/12), the rubber ended down 1.38% or 2.9 points to the level 206.7 yen per kg.
According to Naohiro Niimura, a parent in Market Risk Advisory, positive sentiment from the stock market as well as rising crude oil prices are driving rubber prices today.
"The sentiment towards the rubber market is getting more positive following the optimism about rising demand from China," said Niimura, as quoted by Bloomberg.
However, Niimura added, the downside risk in the next three months still exists because China is expected to tighten its monetary policy.
Supporting rubber prices, the yen was down 0.11 percent or 0.12 points to 112.63 per dollar at 11:51 pm.
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