Rubber prices continued weakening at the end of trading the third day in a row on Wednesday (4/7/2018).
The price of rubber for December 2018 delivery, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.70% or 1.20 points at 171.10 yen per kilogram (kg).
The main raw material price weakening of the tire began as it opened down 0.06% or 0.10 points at 172.20 position, having ended 0.86% or 1.50 points at 172.30 yen per kg on Tuesday 3/7).
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, interest for the rubber market weighed on concerns that rising trade tensions between the United States and China will slow economic growth. "It will also weaken demand for rubber," he added, as quoted by Bloomberg.
Meanwhile, according to Hideshi Matsunaga, an analyst at brokerage firm Sunward Trading, fears that the US and China could impose a car tariff amid trade disputes also weighed on the burs. The policy of reciprocal import tariffs between the United States and China will enter a new phase this week.
The reason, starting Friday this week (6/7/2018), the two largest economies of magnitude in the world will begin to impose mutual tariffs for hundreds of different types of imported products, while marking a major escalation of the conflict.
In line with rubber, West Texas Intermediate (WTI) oil prices for August delivery fell 0.69% or 0.51 points to US $ 73.63 per barrel on the New York Mercantile Exchange at 14:53 pm.
Also weighing on rubber, the yen continued to appreciate 0.08% or 0.09 points to 110.49 per dollar at 15.03 pm, after ending up 0.28% or 0.31 points at 110.58 at trading on Tuesday (3/7).
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