Rubber pared a weekly advance on signs that economic growth is slowing in China, the biggest user of the commodity.
Rubber for delivery in December dropped 0.7 percent to end at 245.1 yen a kilogram ($2,444 a metric ton) on the Tokyo Commodity Exchange. The most-active contract gained 3.7 percent this week, the best performance since the week through May 10.
Reports this week showed expansion in China’s non-manufacturing and manufacturing industries is losing pace as the government seeks to redirect the economy away from its dependence on exports. China’s economy is stable although there are outstanding structural problems, China’s State Council said in a statement today ahead of a press briefing in Beijing.
“Some investors sold rubber amid worries that slow growth in China may reduce demand,” Navarat Kaewpratarn, senior marketing official at Future Agri Trade Co., said from Bangkok.
China’s economic growth in the second half may be 7.6 percent, according to State Information Center report published in China Securities Journal. Goldman Sachs Group Inc., China International Capital Corp., Barclays Plc and HSBC Holdings Plc last month pared their China growth projections this year to 7.4 percent, below the government’s 7.5 percent goal.
Rubber for January delivery on the Shanghai Futures Exchange fell 1.7 percent to close at 17,935 yuan ($2,925) a ton. Thai rubber free-on-board dropped 0.2 percent to 82.45 baht ($2.65) a kilogram today, according to the Rubber Research Institute of Thailand.
To contact the editor responsible for this story: Brett Miller at firstname.lastname@example.org