TOKYO, Oct 18 (Reuters) – TOCOM rubber futures rose on Thursday, extending gains into a third session after Chinese economic data suggested stabilisation in the world’s biggest rubber consumer.
China likely hit the bottom of a seven-quarter long economic downturn between July and September, but traders said rubber prices were unlikely to climb much further unless the dollar strengthened above 80 yen.
“We are closely watching the yen/dollar rate,” said a trader. “At a yen rate of around 80, our view is that the market won’t rise much further from current levels.”
The dollar climbed to a one-month high of 79.22 yen on Thursday as a sharp rise in U.S. Treasury yields on the back of the housing data helped make the greenback more attractive.
On the industry front, Bridgestone Corp, the world’s biggest tyre maker, said on Thursday it expects global demand for tyres used in trucks and buses to grow 5 percent in 2013, led by a 10 percent growth in emerging markets. It expects tyre demand to stay flat in developed economies during the year.
The Tokyo Commodity Exchange rubber contract for March delivery settled up 4.7 yen, or 1.8 percent, at 265.4 yen per kg.
The benchmark contract on Monday fell as far as 256 yen, its lowest since Sept. 28, partly because of anticipations that China’s inflation data could undermine the financial markets, which later proved unfounded.
The most active Shanghai rubber contract for January delivery rose 270 yuan to 25,610 yuan per tonne.
The front-month November rubber contract on the SICOM in Singapore was last traded at 296.10 U.S. cents per kg, up 1.6 cents.
(Reporting by Risa Maeda and Yuko Inoue)
Source: http://af.reuters.com/article/commoditiesNews/idAFL5E8LI56M20121018?sp=true
