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.
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