Asian rubber settled higher on Monday as market sentiment improved after the International Rubber Consortium said current prices are “unreasonably low” and urged producers to not to sell.
Benchmark natural rubber futures on the Tokyo Commodity Exchange settled 2.7% at Y228.2 a kilogram and may extend gains to Y234/kg this week, Tokyo-based brokerage Yutaka Shoji Co. analyst Gu Jiong said.
Recent falls in Tocom were mostly sentiment driven and prices should be around Y230/kg currently, he added.
IRCo will propose Thailand, Indonesia and Malaysia enhance a collective supply management plan, the organization added.
July Tocom rubber closed Y1.3 lower at Y226.9/kg in the night session which is considered part of the next trading day.
Tocom will be closed on Tuesday for a public holiday.
Benchmark May natural rubber on the Shanghai Futures Exchange settled 2.1% higher.
Physical rubber prices are also higher in brisk trade as traders were repositioning themselves after the sustained rebound in rubber futures.
Source: Dow Jones