Rubber Advances as Crude Oil Rally, Low Supply Boost Appeal
May 26 (Bloomberg) — Rubber advanced as crude oil rebounded, improving the appeal of the commodity used to make tires, amid concerns of dwindling supplies in producing countries after the low-production season.
Futures in Tokyo rose as much as 2.8 percent as crude oil rose to more than $70 a barrel after a report showed a drop in gasoline stockpiles in the U.S. A gain in oil boosts the cost of synthetic rubber made from petroleum.
Rubber also climbed as “supplies from major producers have remained tight,” Takaki Shigemoto, analyst at research and investment company JSC Corp. in Tokyo, said today by phone. (more)
Rubber May Jump 25% to 30-Year High on China, Japan Broker Says
May 28 (Bloomberg) — Rubber may climb at least 25 percent to the highest level in three decades as demand increases in China, the largest consumer, outweighing concern European use will slow, said an executive manager at broker Yutaka Shoji Co.
Futures may surpass the 2008 peak of 356.9 yen per kilogram ($3,922 a metric ton) on the Tokyo Commodity Exchange this year to reach the highest level since March 1980, said Kazuya Tetsu, who traded the commodity for more than 30 years at Marubeni Corp. before joining Yutaka Shoji last month. (more)