Rubber retreated from a one-week high as a drop in the Shanghai market raised concern that demand may weaken from China, the world’s largest consumer.
The contract for delivery in October lost 0.4 percent to settle at 288.4 yen a kilogram ($2,811 a metric ton) on the Tokyo Commodity Exchange. Earlier the most-active contract climbed to 294.4 yen, the highest level since May 13.
Rubber for delivery in September on the Shanghai Futures Exchange lost 0.1 percent to 20,485 yuan ($3,341) a ton, reversing earlier gains. UBS AG cut its China GDP forecast to 7.8 percent for 2014, Wang Tao, an economist at the bank, wrote in a report. The nation’s economic growth slowed to 7.7 percent last quarter from 7.9 percent in the fourth quarter of 2012.
“Concerns about the Chinese growth put a drag on the market,” Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo, said by phone today.
Carson Block, the short seller who runs Muddy Waters LLC, said China’s bad-loan problem is more widespread than just local government debt and includes public and private sector borrowing.
Thai rubber free-on-board rose 0.6 percent to 90.35 baht ($3.04) a kilogram today, the highest level since March 11, according to the Rubber Research Institute of Thailand.