The natural rubber futures in Tokyo commodity exchange tumbled on Thursday, reflecting weak crude oil prices and a strong yen encouraged investors to step up selling of the industrial commodity needed to produce tyres.
Asian physical rubber prices were firm to slightly higher on Thursday supported by tight supply
fundamentals, which has helped shrug off the weakness in Tokyo rubber futures.
The benchmark rubber contract on the Tokyo Commodity Exchange for April delivery went down by 12.4 yen, traded at 169 yen.
Rain in Thailand, the world's top rubber producer, has raised concerns about supply tightness, helping to support physical prices of the industrial commodity. The traders said that precipitation this year seemed heavier than usual.
In domestic market on Wednesday. RSS 4 moved down to Rs 84 from Rs 84.50 a kg on buyer resistance.
According to the Vietnam Rubber Association, the rubber price has been decreasing sharply as the oil price has been decreasing, prompting people to use artificial rubber. Moreover, the global financial crisis has affected the consumption of car tyres in developed countries.
Japanese stocks fell for a second day after a decline in crude oil prices to nearly a 20-month low. The Nikkei 225 Stock Average lost 113.79, or 1.3 percent, to close at 8,695.51 in Tokyo.
Oil hits 20-month low, price falls below $58, New York's light sweet crude on Wednesday finished at 56.16 dollars a barrel, down 3.17 dollars from its Tuesday close. In London, Brent North Sea crude slumped 3.34 dollars to settle at 52.37 dollars a barrel.
Gold prices regained some of its recent losses in the domestic market on Wednesday despite a fall in international markets.
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