The price of rubber has weakened along with rising reserves in China and Japan in addition to the effect of strengthening the yen. It is estimated that in the near future the price will move in the range of 174 yen-180 yen per kilogram.
At the close of trading Tuesday (6/2/2018), the price of the most active contract rubber in July 2018 on the Tokyo Commodity Exchange (Tocom) dropped 3 points or 1.53% to 193.70 yen (US $ 1.77) per kilogram (kg) from the 196.70 yen per kg level achieved in the previous trading session.
Asian Trade Point Futures analyst Deddy Yusuf Siregar said that rubber prices are weakening due to pressure from the strengthening of the yen currency so far this year in addition to increasing the amount of reserves.
"Earlier this year the strengthening of the yen has negatively affected the price of rubber," Deddy told Bisnis on Tuesday (6/2/2018).
Observed, the currency movement of Sakura State during the year 2018 has grown 0.19%. Currently the yen is still moving around the 109 level per US dollar, away from the 113.09 level per US dollar on January 8, 2018.
Also putting pressure on prices, the abundance of China's rubber reserves monitored by the Shanghai Futures Exchange (SHFE) and rubber stocks in Japan pushed prices lower.
Recorded, rubber reserves in China as the largest consumer of rubber in the world increased 1.7% in the last week to 426,498 tons. This number is the tenth consecutive weekly rise.
Meanwhile, the Japan Rubber Trading Association recorded rubber stocks rose 8.2% to 13,307 tons. "It is estimated that rubber prices will move in the range of 174 yen-180 yen [US $ 1.59-US $ 1.65] per kilogram in the short term," continued Deddy.
Gu Jiong, an analyst at Yutaka Shoji, said that rubber prices weighed down on global stock markets. Quoted by Bloomberg, Asian bourses slumped on the second day of trading in a row, while US stocks continued to fall following a broad sell-off in the stock market.
"Investors are turning to safe-haven assets, raising the performance of the yen and US bonds," Jiong said.
No comments:
Post a Comment