Rubber Drops From Three-Week High on China Growth ConcernsAya Takada and Supunnabul Suwannakij
Rubber declined for the first time in five days on concern that an economic slowdown in China, the largest buyer, will weaken the demand for the commodity.
Rubber for delivery in December dropped 0.2 percent to end at 245 yen a kilogram ($2,449 a metric ton) on the Tokyo Commodity Exchange, extending this year’s losses to 19 percent. The contract earlier climbed 1.4 percent to 249 yen, the highest level for a most-active contract since June 11.
China’s non-manufacturing purchasing managers’ index fell to 53.9 in June from 54.3 in May to the second-lowest reading since March 2011, when Bloomberg started tracking the data. The slowdown in service industries underscores Premier Li Keqiang’s challenge in achieving sustainable growth across the second-biggest economy through increasing consumption and reducing reliance on exports and investment.
“Rubber declined amid worries over slower growth in China,” Ryuta Imazeki, an analyst at Okachi & Co., said by phone from Tokyo.
Rubber for January delivery on the Shanghai Futures Exchange declined 0.7 percent to close at 18,040 yuan ($2,942) a ton. Thai rubber free-on-board fell 1.2 percent to 83.65 baht ($2.69) a kilogram today, according to the Rubber Research Institute of Thailand.