Markets

Rubber climbs

(China Daily)
Updated: 2010-08-19 08:14

BANGKOK - Rubber climbed to the highest level in more than three months on optimism that demand for tires will continue to grow after stockpiles expanded and on concerns of limited supply as rain in southern Thailand disrupted tapping.

Related readings:  Rubber prices bounce  Tire makers see thin margins as costs soar  Drought takes bounce off rubber growers  Rubber demand up on vehicle sector expansion

The January-delivery contract climbed as much as 2.9 percent to 289.9 yen a kilogram ($3,395 per metric ton) on the Tokyo Commodity Exchange on Wednesday, the highest level since May 6, before settling at 289.4 yen.

China's auto sales may rise to 16 million this year, the China Association of Automobile Manufacturers said on Aug 10, boosting its forecast from a previous estimate of 15 million.

January-delivery rubber in Shanghai gained as much as 1.1 percent to 25,590 yuan ($3,768) a ton, before closing at 25,375 a ton.

Bloomberg News