Rubber Slumps From 30 -Year High as China May Take Steps to Curb Inflation
Rubber in Tokyo slumped from a 30- year high while futures in Shanghai tumbled from a record amid concern that China, the largest user, may take additional steps to curb inflation. The cash price in Thailand remained at a record on supply concerns.
April-delivery rubber on the Tokyo Commodity Exchange declined as much as 5.7 percent to 357.5 yen per kilogram ($4,343 a metric ton) before settling at 360 yen. That is the biggest decline in six months, paring this month’s advance to 10 percent. The May-delivery contract in Shanghai fell by the daily limit to 35,790 yuan ($5,397) a ton.
Commodities declined on speculation that China’s government may step up measures to contain growth in housing and consumer prices after inflation accelerated to a two-year high last month. Inflation quickened to 4.4 percent in October from 3.6 percent in September, the statistics bureau said yesterday. (read on)
Rubber Futures Decline for Second Day Amid Concerns China Will Hike Rates
Rubber in Tokyo tumbled for a second day after climbing to a record last week on concern that China, the largest user, may increase borrowing costs to curb inflation, reducing demand for the commodity used to make tires and gloves.
April-delivery rubber on the Tokyo Commodity Exchange declined as much as 4.3 percent to 344.6 yen per kilogram ($4,173 a metric ton) before trading at 351 yen at 10:28 a.m. local time. The contract fell as much as 5.7 percent on Nov. 12. The May-delivery contract in Shanghai fell by the daily limit to 33,415 yuan ($5,034) a ton. (read on)
Profit taking could take place in M’sian rubber market
KUALA LUMPUR: Profit-taking could take place in the Malaysian rubber market this week after prices surged to their highest levels last week since 1972, dealers said.
They said it is difficult to forecast the market’s direction this week with investors growing wary of the recent rapid pace of gains, while on the other hand physical supply remained tight. (read on)