July 8 (Bloomberg) -- Rubber declined to a one-week low as a sell-off in China’s stocks and commodities raised concern that demand may weaken from the biggest consumer.
Rubber for delivery in December lost 2 percent to end at 240.1 a kilogram ($2,373) on the Tokyo Commodity Exchange, the lowest settlement since July 1. The most-active contract has plunged 21 percent this year.
Chinese stocks dropped the most in two weeks, led by commodity and industrial companies. The nation’s money-market cash squeeze is likely to reduce credit growth this year by 750 billion yuan ($122 billion), an amount equivalent to the size of Vietnam’s economy, according to a Bloomberg News survey.
“Concerns about China’s economy put a drag on the market,” Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo, said by phone today.
International Monetary Fund Managing Director Christine Lagarde said July 7 the fund may cut its global growth forecast because expansion of emerging market economies is slowing.
Rubber for January delivery on the Shanghai Futures Exchange fell 3.6 percent to 17,295 yuan a ton, the lowest close since June 24. Natural-rubber inventories climbed 125 tons to 114,121 tons, based on a survey of nine warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the exchange said July 5.
Thai rubber free-on-board remained unchanged at 82.45 baht ($2.62) a kilogram today, according to the Rubber Research Institute of Thailand.
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