Thailand exporters asked not to export rubber

TOKYO (Commodity Online): Rubber, which exhibited a robust demand lately is now continuing with the downward spiral as the prices tumbled to the lowest level in more than four months.
TOCOM August contract, the most active contract, has plummeted as much as 13% to 335 yen for a kilogram ($4,097 a metric ton) before being traded at 360.5 yen at 12:10 p.m , reported Bloomberg.com.
Monday, the contract was down 4.5% or 17.9 yen and reached 383.5 yen a kilogram ($4,665 a metric ton) at one point.
There are also concerns that Thailand will stop rubber exports amid the price attrition with the Deputy PM asking exporters to suspend shipments and instructing banks to provide them with credit so that traders can stock pile rubber.
The government is also encouraging farmers not to sell produce below the minimum levels.
Rubber has tumbled 32% since touching 528.4 yen on February 17.
Middle East crisis and China taking foot away from the growth pedal have been the pivotal factors until Japan crisis forced auto majors to shut shop there.
Radiation fears are driving the markets mad with the ever-golden-precious-metal gold shedding weight, though in a minimal manner.
With the Japanese car makers shutting shop, April rubber contract in Tokyo Commodity Exchange (TOCOM) was suspended as it hit the circuit breakers when it tumbled 30 yen to reach 378.4 yen on Monday.
Honda and Nissan, among of the largest manufacturers of automobiles have halted operations. Toyota will keep shut its plants on 15 and 16 while Isuzu will be closed until March 18. Hino Motors would be closed until March 18 too.
Nissan has reported damage to 2300 new vehicles and minor damages to four of its factories.