The price of rubber fell sharply and touched the range of 180 level in morning trading on Tuesday (20/3/2018), amid concerns about the trade tension of the United States (US) and China.
The price of rubber for delivery in August 2018 on the Tokyo Commodity Exchange (Tocom), slid 1.73% or 3.30 points to 187.70 yen per kilogram (kg) at 10:36 pm.
Previously, rubber prices opened down 0.05% or 0.10 points to 190.90 yen per kg, after trading on Monday (19/3) ended down 0.42% or 0.80 points at 191 position.
According to Gu Jiong, brokerage analyst Yutaka Shoji, fears that a trade tension between the US and China could affect commodity demand triggered a sell-off.
The Trump President Government is reportedly urging countries to ally with the United States against Chinese trade policies.
According to a European official, this urgency was waged in return for the US steel and aluminum tariff waivers.
"At the same time, an increase in China's rubber reserves also weighed on sentiment," added Gu Jiong, as quoted by Bloomberg.
China's rubber reserves monitored by the Shanghai Futures Exchange rose 0.1% to 438,248 tonnes last week, the highest level since November.
On the other hand, the yen exchange rate was observed to weaken 0.17% or 0.18 points to 106.28 position per US dollar at 10:42 pm, after ending depreciating 0.08% at 106.10 position on Monday trading (19/3 ).
Meanwhile, West Texas Intermediate oil prices tracked a rebound and rose 0.32% or 0.20 points to as low as US $ 62.26 per barrel on the New York Mercantile Exchange at 10:15 pm.
No comments:
Post a Comment