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.
Wednesday, May 23, 2018
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.
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