Rubber climbed, snapping a four-day losing streak, as data showed improvement in China’s economy, boosting demand from the largest consumer.
The contract for March delivery on the Tokyo Commodity Exchange gained as much as 1.9 percent to 261.4 yen a kilogram ($2,689 a metric ton), rebounding from the lowest settlement since Aug. 8. Futures traded at 260.3 yen at 10:56 a.m., paring losses to 14 percent this year for a most-active contract.
China’s non-manufacturing purchasing managers’ index rose to 55.4 in September from previously reported 53.9 in August, according to a statement released today by the Beijing-based National Bureau of Statistics and the Federation of Logistics and Purchasing. A reading above 50 indicates expansion.
“Concerns about China’s economic slowdown are easing,” said Hideshi Matsunaga, an analyst at broker ACE Koeki Co. in Tokyo. “Futures are supported by speculation that demand from the nation will pick up.”
Natural-rubber consumption will climb 1.5 percent this year and 4.1 percent in 2014 from 11.04 million tons in 2012, Prachaya Jumpasut, managing director at the Rubber Economist Ltd., said at a conference in Indonesia yesterday.
Thai rubber free-on-board fell for a sixth day yesterday, losing 1 percent to 78.75 baht ($2.52) a kilogram, according to the Rubber Research Institute of Thailand.
Markets in China are closed through Oct. 7 for National Day holidays.
Source: Bloomberg
