Asian Rubber Settles Mixed; Vietnam Pledges Support
16 March 2015, 18:36 SEAST
Asian rubber settled mixed Monday on slow demand from China, offsetting tightness in the spot market due to seasonal factors.
Benchmark August natural rubber futures on the Tokyo Commodity Exchange settled 1.5% lower at Y210.2 a kilogram.
The front months Tocom rubber contracts however will likely be supported by short-covering and shippers taking delivery, keeping the downside limited.
The International Rubber Consortium said on its website Monday that Vietnam had given its commitment to cooperate with Thailand, Indonesia and Malaysia. Vietnam, the world’s third-largest producer of natural rubber, will cut production by reducing tapping activities, managing plantings and encourage farmers to switch to other crops to support prices.
August Tocom natural rubber closed Y1.0 higher at Y211.2/kg in the night session, which is considered part of the next trading day.