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Rubber had the first quarterly loss since 2008 on concern the global economic recovery may falter, weakening demand for the commodity used in tires.
Futures in Tokyo tumbled for a third day to the lowest level in more than two weeks, after data showed an unexpected drop in U.S. consumer confidence and the downward revision of a leading economic indicator for China. The price dropped 13 percent this quarter, the first loss since the three months ended Dec. 31, 2008.
Asian stocks extended a global rout, dropping to a three- week low. The Conference Board’s gauge of confidence among U.S. consumers slumped to 52.9 this month from a revised 62.7 in May. The nation is the biggest consumer of natural rubber after China.
“The market came under pressure amid concern that the global economy may slow down as governments, struggling to reduce fiscal deficits, cannot continue stimulus measures,” Hisaaki Tasaka, analyst at Tokyo-based broker ACE Koeki Co., said today by phone. “Rubber may drop further together with other industrial commodities.”
December-delivery rubber fell as much as 2.9 percent to 266.5 yen ($3,011 a metric ton) on the Tokyo Commodity Exchange before settling at 269.2 yen.
The Conference Board said yesterday its leading economic index for China climbed more slowly in April than previously estimated. The board’s U.S. confidence index in June was lower than all forecasts in a Bloomberg News survey.
Thai Output
Rubber futures advanced yesterday to 285.2 yen, the highest level since May 28, as rain disrupted output in Thailand, the biggest producer and exporter.
“The downside is limited as Japan and China have low inventories,” said Felix Yeo, trading manager at the Singapore unit of Marubeni Corp. “Raw materials are still tight and that will easily push up the market again.”
Stockpiles in China declined to the lowest level in seven years, data showed last week, sparking optimism that the world’s biggest buyer may soon replenish inventories.
Natural rubber stockpiles monitored by the Shanghai Futures Exchange dropped 1,670 tons to 14,771 tons, the bourse said on June 25. That was the lowest level since January 2003, according to Bloomberg data.
China, the largest auto market, is the biggest consumer of natural rubber. The nation may increase gross imports of the raw material to 1.68 million tons this year, from 1.59 million in 2009, according to a May report from the Association of Natural Rubber Producing Countries.
November-delivery rubber on the Shanghai Futures Exchange lost as much as 1.9 percent to 21,175 yuan ($3,119) a ton and closed at 21,585.
Cash prices in Thailand extended losses as Chinese buyers have delayed purchases, according to the Rubber Institute of Thailand. The Thai benchmark price plunged 2.1 percent today to 115.60 baht ($3.57) a kilogram, it said.
Source: Bloomberg