Tokyo Commodity Exchange (TOCOM) futures plunged to an 11-year low on Monday as the coronavirus pandemic worsened and lockdowns tightened across the world, raising concerns over slower demand and prompting a flurry of fresh selling.
TOCOM's rubber contract for September delivery finished 5.4 yen, or 3.6%, lower at 144.2 yen ($1.3) per kg, having touched 143.0 yen, its lowest since March 2009, earlier in the session.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 355 yuan to finish at 9,475 yuan ($1,336) per tonne. It sank to 9,370 yuan, its lowest since December 2018, earlier in the session.
The front-month rubber contract on Singapore's SICOM exchange for April delivery last traded at 104.7 US cents per kg, down 2.1%.
"We saw fresh selling as automakers are shutting down more plants across the world, underlining dwindling demand for tyre," said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co. "With no signs of the pandemic ending, the TOCOM could dive below 140 yen levels," he added.
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