Rubber declines
TOKYO - Rubber tumbled to its lowest price in more than two months amid speculation that China may delay purchases of the commodity after the nation's car sales declined.
On Wednesday, the August-delivery contract lost as much as 3.7 percent to 401 yen a kilogram ($4,837 a ton), the lowest level since Dec 20, before settling at 412.4 yen.
The market tumbled after data showed car sales in China dropped last month for the first time since at least September 2009, stoking concern that Chinese demand for rubber will decline.
"The market came under pressure amid concern that China may delay purchases on expectation of further declines in rubber prices and on concerns about demand from tire makers," said Kazuhiko Saito, an analyst at Fujitomi Co.
Bloomberg News
(China Daily 03/10/2011 page16)
