Asian Rubber Futures Settle Down; Supply Shortage Looms
8 April 2015, 17:56 SEAST
Asian rubber futures settled lower Wednesday as market sentiment remained weak on demand concerns.
Benchmark September natural rubber on the Tokyo Commodity Exchange settled Y3.0 lower at Y199.0 a kilogram, falling below the previous Y200/kg psychological support and sparking concerns of further losses.
International Rubber Consortium Chief Executive Yium Tavarolit said in a market report released Wednesday morning that there had been an acceleration of rubber tree replanting amid a sustained price decline since 2012. He said there would be a “critical” natural rubber supply shortage if prices continue to stay below the cost of production, as rubber farmers cannot sustain their livelihoods.
Benchmark September Tocom rubber closed Y0.7 lower at Y198.3/kg in the night session, which is considered part of the next trading day.