4 Oct 2018
Tokyo – The Tokyo Commodity Exchange (TOCOM) has announced that it will be listing technically specified rubber (TSR) futures contracts as of 9 Oct “in response to changing market demand”.
TSR classified natural rubber, along with ribbed smoked sheet (RSS), serves as a key component in tire production.
In a 5 Sept statement, TOCOM said TSR production and consumption had exceeded those of RSS in in recent years and the listing aimed to would improve its rubber market.
“This listing will increase the convenience of our rubber market for Japan’s rubber industry, the world’s largest rubber consumer, as well as China and producers in Thailand and Indonesia,” said TOCOM CEO and president Takamichi Hamada.
Speaking to ERJ, a TOCOM spokesman said the listing of TSR is expected to increase the volume of rubber trading significantly at the exchange.
The listing is pending regulatory approval from the Japanese minister of agriculture, forestry and fisheries and the minister of economy, trade and industry.
The product type on offer will be STR20 (Standard Thai Rubber 20) and will be manufactured at TOCOM-approved factories in Thailand.
The ports of Bangkok and Laem Chabang in Thailand and Penang in Malaysia have been designated for the physical delivery of the shipments.
Contract units will be 5,000kg and delivery units will be equivalent of four contract units, i.e. 20,000kg. Delivery method will be FOB (free on board) on a buyer-designated vessel.
TOCOM has been offering RSS rubber contracts for the past 66 years.
In a 28 Sept report, Doha-based Gulf Times said TSR production has climbed because of consistency in quality and as low prices discourage RSS output.
Back month rubber prices for RSS3 on TOCOM fell more than 18% over the first 10 months of the year, closing at Yen169.5/kg on 3 Oct.
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