Weakening rubber prices continued at once thrown from the 170 level at the end of trading today, Thursday (5/7/2018).
The price of rubber for December 2018 delivery, the most active contract on the Tokyo Commodity Exchange (Tocom), closed down 0.94% or 1.60 points at 169.50 yen per kilogram (kg).
In fact, the price of the main raw material of this tire was rebounded when it opened in the green zone with a 0.06% increase or 0.10 points at 171.20 this morning. In trading Wednesday (4/7), rubber ended down 0.70% or 1.20 points at 171,10 yen per kg position.
According to JSC research company analyst Takaki Shigemoto, concerns about rising tension trade have weighed on the rubber market. As is known, the policy of reciprocal import tariff between the United States (US) and China will enter a new phase this week.
The US government plans to impose tariffs on Chinese imports worth US $ 34 billion starting Friday (6/7/2018). The Chinese government has vowed to take revenge.
China's finance ministry later stated that China would not start a trade war with the United States (US) or be the first in launching import tariffs.
"Also, the weakening of currencies in Southeast Asia has also heightened speculation that rubber producers can encourage shipments," Shigemoto added, as quoted by Bloomberg.
Meanwhile, the yen exchange rate was observed to weaken 0.13% or 0.14 points to 110.63 position per US dollar at 14.25 WIB, after ending up 0.08% or 0.09 point at 110.49 level on Wednesday (4/7).
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