Markets

Rubber bounces to record high

(China Daily)
Updated: 2011-02-15 13:34

TOKYO - Rubber advanced to a record amid speculation that China may increase purchases to replenish stockpiles before the low-production period begins in major growing areas in Thailand. The Thai cash price also climbed to an all-time high.

Related readings:  China's Hainan Rubber to start trading on Jan 7  Hainan Rubber rounds off big year for China IPOs  China's rubber sector stretched to the limit  Rubber shows its elasticity as market prices bounce about

The July-delivery contract climbed as much as 1.2 percent to 520 yen a kilogram ($6,247 a ton) before settling at 518.7 yen on the Tokyo Commodity Exchange. The most-active contract has advanced 25 percent this year, extending the 50 percent rally in 2010.

Natural-rubber inventories monitored by the Shanghai Futures Exchange declined 615 tons to 58,058 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the bourse said on Friday.

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