The RSS2008 contract opened at 150.1 yen in early Tokyo trading, up 1.2 yen from the last session. The RSS2009 contract opened at 132.1 yen, flat from the previous session. The dollar traded near 110.867 against the yen early in the day.
with risk aversion in financial markets intensified and commodity markets as a whole continued to weaken, Yesterday's Tokyo rubber market the far-month contract fell below the 150 yen round and then hit a intraday low near 146 yen. In recent trading days to see the trend, short-day arbitrage pattern is obvious, weak support below the price.
Late yesterday, the Toyota announced the closure of five Japanese car factories, including Hino Motors, from April 3, with no clear date for resumption of production. The auto market which has been hit hard by the 2019-ncov outbreak, it is expected to follow suit after Toyota closes factories, Japan's domestic demand for rubber may further lead to a decline in prices. In the first two months of the year in Tokyo, a large number of warehouse receipts due to the expiration of contracts in the same month led to a larger-than-planned take-over by Japanese spot merchants, and demand for spot delivery of contracts starting in April is expected to drop sharply.
In automotive industries, rubber co-extrusion EPDM as one of part which are impacted for market demand sharply down.
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