Dec. 3 (Bloomberg) -- Rubber dropped from a two-month high, snapping a three-day winning streak, amid speculation rising prices may sap demand from China, the largest consumer.
The contract for delivery in May on the Tokyo Commodity Exchange lost 0.5 percent to end at 273.9 yen a kilogram ($2,652 a metric ton). Futures settled yesterday at the highest level since Sept. 26.
China’s non-manufacturing purchasing managers’ index fell to 56 in November from a previously reported 56.3 in October, according to data from the Beijing-based National Bureau of Statistics and the China Federation of Logistics and Purchasing. Asian stocks outside Japan fell for the first time in eight days and the region’s currencies weakened.
“The market came under pressure amid speculation Chinese buying had subsided,” said Hideshi Matsunaga, an analyst at Evolution Japan Co., a broker in Tokyo.
Natural rubber demand growth in China is forecast to slow to two percent next year, compared with growth of six percent in 2013, because of some depletion of stocks, according to an Economist Intelligence Unit report published in November. Consumption will increase by 3.7 percent to 4.32 million tons in 2015, it estimated.
Futures also declined on signs that anti-government protests in Thailand may be losing steam, reducing the risk of disruptions from the world’s largest exporter, Matsunaga said.
Bangkok police moved to defuse tension with anti-government protesters stationed outside their headquarters, a sign that authorities are seeking to deflate a month-long effort to oust Prime Minister Yingluck Shinawatra.
Declines were limited amid concern rain in Thailand’s southern provinces, the country’s main production area, will reduce supplies, Thanasett Deeprasertkul, an analyst at DS Futures Co. said by phone from Bangkok. Heavy rain spread across Thailand’s south, disrupting tapping, the Rubber Research Institute of Thailand said on its website.
Thai rubber free-on-board added 0.9 percent to 81.95 baht ($2.55) a kilogram today, the institute said. Futures for May delivery on the Shanghai Futures Exchange lost 1.2 percent to close at 19,450 yuan ($3,192) a ton.
--Editors: Alexander Kwiatkowski, Sungwoo Park