NATURAL rubber prices in Asia has dropped to the lowest levels in four to six months, after Chinese authorities ordered local warehouses in Qingdao, Shandong province, to clear some of their rubber stocks within 10 days for safety reasons, according to a report by Platts.
The order came following a minor fire at one of the warehouses in the previous week. According to sources, the authorities had asked for all stocks that are a year old and those placed outside and at the passageways leading to the inside of the building to be removed.
Based on the data from the Qingdao International Rubber , rubber inventories at warehouses in Qingdao rose to 354,940 tonnes as of February 27, more than the previous load of 321,900 tonnes on January 31.
Traders are expected to clear stocks outside the warehouses, since the domestic price of TSR 20 had fallen by more than RMB1,000/tonne (US$161/tonne) over the previous week.