TOKYO: Japanese rubber futures slid on Wednesday on concerns that a resurgence of COVID-19 cases in Japan and India may slow a recovery in global rubber demand and on speculations that the Thai government may release some of its old inventories.
Osaka Exchange’s rubber contract for September delivery finished down 1.7 yen, or 0.7%, at 233.2 yen ($2.2) per kg.
Japanese government is considering a state of emergency for Tokyo and several other prefectures, while Indian data showed on Wednesday there had been 295,041 new infections nationwide overnight and 2,023 deaths, India’s highest in the pandemic.
“There have been some speculations that Thai government may release more than 100,000 tonnes of old rubber stocks, which weighed on the market sentiment,” a Tokyo-based dealer said.
The rubber contract on the Shanghai futures exchange for September delivery rose 120 yuan to finish at 13,910 yuan ($2,141) per tonne. Investors looked for bargains after a sell-off early this week, the dealer said.
The front-month rubber contract on Singapore’s SICOM exchange for May delivery last traded at 162.7 US cents per kg, down 0.2%.