Rubber Falls to One-Week Low as China Manufacturing Gauge DropsAya Takada
Rubber declined to a one-week low as a Chinese manufacturing gauge fell for the first time in four months, raising concern that demand may weaken from the world’s largest consumer of the commodity used in tires.
The contract for delivery in April on the Tokyo Commodity Exchange lost 0.2 percent to 258.3 yen a kilogram ($2,562 a metric ton), the lowest settlement since Nov. 13. Futures have retreated 15 percent this year.
The preliminary 50.4 reading in November for a Purchasing Managers’ Index released today by HSBC Holdings Plc and Markit Economics missed a 50.8 median estimate from analysts surveyed by Bloomberg News. The final number for October was 50.9, and levels above 50 indicate expansion.
“The Chinese data weighed on the market,” said Hideshi Matsunaga, an analyst at broker ACE Koeki Co. in Tokyo.
Rubber for May delivery on the Shanghai Futures Exchange lost 0.9 percent to close at 19,195 yuan ($3,150) a ton. Thai rubber free-on-board was unchanged at 78.60 baht ($2.47) a kilogram today, according to the Rubber Research Institute of Thailand.