“An agreement by rubber producing countries to slash exports has been driving the market in the past two days,” said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co.
A group of three of the world’s top natural rubber producers will cut exports by up to 350,000 tonnes in total from now until March next year, the Thai agriculture ministry said on Friday, in a bid to address declining global prices.
The Tokyo Commodity Exchange (TOCOM) rubber contract for June delivery finished 3.7 yen, or 1.8%, higher at 212.1 yen (US$1.87) per kg, after touching the highest since Sept. 28 of 213.4 yen earlier in the session.
The most-active rubber contract on the Shanghai futures exchange for May delivery surged 235 yuan to finish at 14,315 yuan (US$2,188) per tonne.
“Still, I think upside potential may be limited this week as most investors will be mainly making position adjustments ahead of the New Year holiday,” Tazawa said.
The front-month rubber contract on Singapore’s SICOM exchange for January delivery last traded at 147.2 US cents per kg, up 3.1 cent.
China’s natural rubber imports fell 14.9% in November from a year earlier, the country’s customs data showed on Tuesday.
(US$1 = 6.5421 Chinese yuan)