August 12, 2019 / 7:37 AM / 6 days ago

UPDATE 1-Shanghai's new rubber futures bounce on trading debut

(Adds closing price, trading volume)

BEIJING, Aug 12 (Reuters) -

* China’s TSR 20 rubber futures jumped by nearly 10% on their trading debut on the Shanghai International Energy Exchange (INE) on Monday

* The front-month contract for delivery in February 2020 surged 9.9% in morning trade, from the base price of 9,260 yuan ($1,311.34) a tonne to 10,175 yuan, before easing back to 9,820 yuan, up 6.1%, at the close

* The trading volume was 87,618 lots, just over one-third that of the INE’s flagship crude oil contract and about one-quarter that of the Shanghai Futures Exchange’s established rubber contract, which closed down 0.9% on Monday

* China wants the TSR 20 rubber contract to be a benchmark for international rubber prices, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said in a speech at the launch ceremony

* “Global production of natural rubber is over 12 million tonnes of which 70% are used for tyre manufacturing, and over 80% of the tyre manufacturers use the TSR 20 rubber benchmark,” John Browning, managing director of brokerage Bands Financial, said in a note

* Japan’s TOCOM exchange, home to the current regional rubber benchmark, was closed on Monday for a public holiday, meaning the “arbitrage opportunity between INE and TOCOM rubber is unavailable,” Browning said

* TSR (technically specified rubber) 20 futures are the fourth commodities futures in mainland China that are open to foreign investors after INE crude oil, iron ore in Dalian and purified terephthalic acid (PTA) in Zhengzhou

$1 = 7.0615 yuan Reporting by Tom Daly; Editing by Richard Pullin and Tom Hogue

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