Rubber climbed as data in the U.S. yesterday showed companies in the world’s largest economy were expanding capacity, potentially boosting demand for the commodity used in tires.
The contract for delivery in September, the most-active by volume, gained as much as 1.3 percent to 283 yen a kilogram ($2,992 a metric ton) before trading at 281.3 yen on the TokyoCommodity Exchange by 10:41 a.m. local time.
Orders for U.S. durable goods climbed more than forecast in February as companies focused on expanding capacity to meet growing demand. Bookings for goods meant to last at least three years rose 5.7 percent, the most since September, after a 3.8 percent drop the prior month, the Commerce Department said yesterday in Washington.
“Investor confidence in the U.S. recovery strengthened, spurring purchases of the futures,” Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo, said by phone.
The contract for September delivery on the Shanghai Futures Exchange rose 0.2 percent to 22,805 yuan ($3,669) a ton. Thai rubber free-on-board was unchanged at 86.50 baht ($2.95) a kilogram yesterday, the Rubber Research Institute of Thailand said on its website.
China’s natural rubber consumption this year may rise 7 percent to 3.7 million tons, Deng Yali, chairman of China Rubber Industry Association, said at a conference in Qingdao yesterday.
Source: Bloomberg
