Tocom rubber futures settle slightly higher after gaining as much as 1.8%, with prices tracking Shanghai rubber, which have pared gains and are hovering around the key CNY23,000/ton level. A trader in Thailand says Tocom is likely to stay above the key Y230/kg level this week although prices may face downside risk if market sentiment turns sharply negative; he adds, spot demand is firm, but there are persistent global growth concerns. Data from top natural rubber consumer and importer China show that although natural rubber imports were higher in August, tire output was down both on year and on month; this indicates bargain-hunting on the raw material, even though industrial production is down, and could weigh on prices as Chinese buyers are known for driving hard bargains. Most trade participants peg Tocom resistance around Y240/kg. Benchmark February rubber settles up Y0.6 at Y236.9/kg, off the intraday high of Y240.6/kg.

Source: Dow Jones

Comments are closed.