This entry was posted on Thursday, April 15th, 2010 at 4:36 pm and is filed under Rubber News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
April 15 (Bloomberg) — Rubber climbed to a 20-month high as China’s economicgrowth accelerated, boosting speculation demand will grow for the commodity used in tires.
Futures in Tokyo gained as much as 1.7 percent to 335.4 yen per kilogram ($3,588 a metric ton), the highest level since July 28, 2008. The price reached a 28-year high of 356.9 yen on June 30, 2008.
China’s gross domestic product expanded 11.9 percent in the first quarter from a year earlier, the statistics bureau said at a briefing in Beijing today. That was more than the median 11.7 percent estimate in a Bloomberg News survey of 24 economists and the fastest pace in almost three years. China is the largest consumer of natural rubber.
“Rubber is advancing on tightening fundamentals,” Hisaaki Tasaka, an analyst at Tokyo-based commodity broker ACE Koeki Co., said today by phone. “Supply from Thailand is declining, while demand in China is expanding.”
Rubber for September delivery added 1.4 percent to 334.5 yen on the Tokyo Commodity Exchange at 11:52 a.m. local time. The price increased for the fourth time in five days.
Futures have risen 21 percent this year as global economies recovered from the worst postwar recession, boosting sales of cars and tires. A seasonal decline in output in Thailand, the largest producer, also increased prices, Tasaka said.
Slow Shipments
Thailand is in a low-production period from February to April, known as wintering, when rubber trees shed their leaves and latex output slows. Shipments from the country will remain slow until early June, Tasaka said.
Clashes between Thai security forces and anti-government protesters also stoked speculation that the political turmoil may disrupt supplies from the country, Tasaka said. The violence killed 21 people before a three-day holiday in Thailand. Rubber trade in the nation will resume tomorrow after the holiday.
China’s industrial production rose 18.1 percent in March and retail sales climbed 18 percent, today’s data showed. Car sales leapt 76 percent in the first quarter from a year earlier, with Mercedes-Benz (China) Ltd. reporting a doubling.
September-delivery rubber on the Shanghai Futures Exchange added 0.6 percent to 25,725 yuan ($3,769) a ton at 11:01 a.m. local time.
Source: Bloomberg