Natural rubber futures in Tokyo commodity exchange fell for the fifth consecutive day on Wednesday to the lowest since December 2006, on concern the global credit crisis is slowing economic growth and weakening demand for the commodity used to make tires.
Asian physical rubber prices tumbled today reflecting the sharp decline in Tokyo rubber futures, which have lost about eleven percent since last week, on concern that the economic downturn will depress demand.
On account of the words of Mr.N Radhakrishnan, the president of Cochin rubber merchants Association, the unprecedented fall in rubber spot prices during the last two weeks will lead to 7000 rubber traders losing a sum total of around Rs 70 crore.
The crash in prices following the plummeting of commodity prices globally has put traders in a disarray. The domestic prices which ruled at Rs 10 a kg higher than the rates in the global market are now quoting Rs 15 lower than the international market.
Depreciation in the price of crude oil is a major concern of the natural market as this in turn would cause a drop in the prices of synthetic rubber. The huge rise in the synthetic rubber prices for the last few months was a major factor for the sharp rise in price of natural rubber.
Tokyo Commodity Exchange:
Rubber for March 2009 delivery traded at 206 yen per kilogram, 15.4 yen down.
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