Benchmark Tokyo rubber futures extended declines on Tuesday and touched a near two-week low after data showed domestic rubber inventories grew 3 percent and the world's No.2 producer, Indonesia, said it was not worried about a recent slump in prices as market fundamentals remained strong.
Moenarji Soedargo, chairman of the Indonesian Rubber Association (Gapkindo), made the comment after a weekend meeting of the main international rubber producer group, held in Indonesia.
"There probably would be no (production) cuts from the meeting, though some market participants had projected a curb," said a Tokyo-based dealer. "The decline also may have reflected the unwinding of positions that had built up recently."
Crude rubber inventories at Japanese ports stood at 4,727 tonnes as of June. 10, up 3 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Tuesday.
The Tokyo Commodity Exchange rubber contract for November delivery finished 4.9 yen lower at 190.3 yen ($1.70) per kg after touching 181.1 yen, the lowest since June 8.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 105 yuan to finish at 12,630 yuan ($1,849) per tonne after touching a near one-week low.
The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 139.2 U.S. cents per kg, down 2 cents. ($1 = 6.8292 Chinese yuan) ($1 = 111.6900 yen)
