Rubber Declines to One-Month Low Amid China Demand ConcernsSupunnabul Suwannakij and Aya Takada
Rubber extended losses for a fourth day and settled at the lowest level in a month amid speculation that China may take measures to curb asset prices, weakening raw-material demand from the world’s largest consumer.
The contract for delivery in April on the Tokyo Commodity Exchange lost 0.2 percent to 255.2 yen a kilogram ($2,588 a metric ton). That’s the lowest settlement since Oct. 4 for a most-active contract.
Most Chinese stocks fell, led by financial companies, before the start of a Communist Party meeting later this week. Inflation may accelerate in the fourth quarter and China can’t be “blindly optimistic” about prices, the People’s Bank of China said in a report yesterday.
“China may take measures to control home prices, which could have an impact on commodities,” said Naohiro Niimura, a partner at research company Market Risk Advisory in Tokyo.
Rubber for May delivery on the Shanghai Futures Exchange lost 0.3 percent to 19,425 yuan ($3,187) a ton. Thai rubber free-on-board dropped 0.4 percent to 77.55 baht ($2.48) a kilogram today, according to the Rubber Research Institute of Thailand.