Rubber declined for a fifth day on Monday and traded near a two-month low as stockpiles increased in China, the largest consumer, and a survey showed the country’s manufacturing may expand this month at a slower rate.
The contract for July delivery on the Tokyo Commodity Exchange fell as much as 0.8% to 294.6 yen a kilogramme (US$3,132 a metric tonne), approaching the two-month low of 292.7 reached Feb 21, and was at 295.9 yen at 10.52am. Futures have declined 2.2% this year.
The preliminary reading of a Purchasing Managers’ Index was 50.4 in February, according to a statement from HSBC Holdings Plc and Markit Economics today. That compares with the 52.3 final reading for January and the 52.2 median estimate of 11 analysts surveyed by Bloomberg News. A number above 50 indicates expansion. Inventories monitored by the Shanghai Futures Exchange rose 2,401 tonnes to 102,416 tonnes, the bourse said Feb 22. It was the highest level since March 2010.
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