Rubber near one-week high as China auto sales boost demand outlook
ERJ staff report (TP)
Tokyo − Rubber traded near a one-week high yesterday (12 November) after data showed vehicle sales in China climbed by the most since January, boosting the outlook for demand from the world’s largest consumer of the commodity used in tires, reported Aya Takada from Bloomberg.
The contract for delivery in April on the Tokyo Commodity Exchange gained as much as 0.7 percent to 260.3 yen a kg (€1.9436) and traded at 260.2 yen (€1.9428) at 10:14am (12 November, Japan time). Futures settled at the highest level since 1 November two days ago (11 November).
Wholesale deliveries of cars, multipurpose and sport utility vehicles rose to 1.61m last month, data from the state-backed China Association of Automobile Manufacturers showed yesterday. That compared with the median estimate of 1.5m units by three analysts surveyed by Bloomberg News.
“Expanding car sales in China raised optimism about growth in demand for rubber,” said Hideshi Matsunaga, an analyst at broker ACE Koeki in Tokyo.
Rubber for May delivery on the Shanghai Futures Exchange was little changed at 19,415 yuan (€2,370) a tonne. Thai rubber free-on-board gained 1.3 percent to 79.05 baht (€1.86) a kg on 11 November, according to the Rubber Research Institute of Thailand.
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Full story from Bloomberg