Rubber futures face turbulence amid new coronavirus epidemic

Dark clouds hang over tire demand while supply worries persist

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There are growing concerns that China's tire production might stagnate. © Reuters

HIROKI MASUDA and RURIKA IMAHASHI, Nikkei staff writers

TOKYO -- Natural rubber prices are fluctuating wildly as the deadly outbreak of the new coronavirus that causes pneumonia spreads, especially in its epicenter Wuhan and elsewhere in China.

Natural rubber is essential to the production of auto tires. It is also widely used for industrial products such as hoses and belts. The recent turmoil in the commodity's market comes as China, the world's biggest auto market and second-largest economy after the U.S., is struggling to cope with the public health crisis.

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