Markets

Rubber prices bounce

(China Daily)
Updated: 2010-06-29 10:07

TOKYO - Rubber advanced to a one-month high after data showed stockpiles in China declined to the lowest level in seven years, sparking optimism the biggest buyer may soon replenish inventories.

Related readings:  Rubber shows its elasticity as market prices bounce about  Rubber declines on slow vehicle sales  Rubber rises for 2nd day  Rubber falls as oil weakens

Futures in Tokyo climbed to 288.6 yen per kilogram ($3,231 a metric ton), matching a high reached on May 28.

The price gained 3.8 percent last week, booking the second weekly increase, as rainfall disrupted production in Thailand, the world's biggest producer and exporter.

Natural rubber stockpiles monitored by the Shanghai Futures Exchange dropped 1,670 tons to 14,771 tons, the bourse said on June 25. It was the lowest level since January 2003, according to the Bloomberg data.

Bloomberg News