Benchmark Tokyo rubber futures posted a third straight weekly loss on Friday due to stable supplies and weak demand. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, have been under pressure due to high inventories and flat demand in recent weeks.
"There is no favourable news that supports rubber prices. Fundamentals are still weak. Supplies are stable while heavy truck and car sales have slid, according to recent data," said Hu Ding, analyst with China Futures Research. "Oil prices in the short term will also keep weighing down on rubber prices," Hu said.
The Tokyo Commodity Exchange rubber contract for April delivery finished 0.1 yen ($0.0009) lower at 157.8 yen per kg. For the week, Tokyo rubber fell 3.2 yen. TOCOM's technically specified rubber (TSR) 20 futures contract for May delivery fell 0.1 yen to close at 143.7 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 20 yuan ($2.88) to finish at 11,225 yuan per tonne. The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 123.2 US cents per kg, unchanged.
