NEGOTIATOR’S TAKE: Higher Rubber costs mean upward price pressure on tires, industrial hoses, etc.
04.12.16 – Tokyo
Benchmark Tokyo rubber futures extended gains to hit an 8-month high on Tuesday as firmer prices of oil and other commodities fed appetite for risk, while China’s solid auto sales in March bolstered hopes of a pick-up in demand in the world’s top buyer.
The Tokyo Commodity Exchange (TOCOM) rubber contract for September delivery <0#2JRU:> finished 3.8 yen, or 2.1%, higher at 189.0 yen (US$1.75) per kg, after a 4.6% jump the previous day.
Futures hit highest since August 2015
The TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, earlier touched a high of 190.2 yen (US$1.76), surpassing last week’s high of 188.4 yen and hitting the highest since August 18 last year.
“Bullish trend in oil, gold and other commodities increased investors’ appetite for risk and prompted short-coverings and fresh buys,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
U.S. crude futures holding above $40 per barrel
Oil prices were stable on Tuesday, with US crude futures holding above US$40 per barrel and Brent approaching US$43 ahead of a meeting of major producers to discuss freezing output levels to rein in ballooning oversupply . . . . Read the rest of this Propurchaser sourced article, HERE.
SOURCE: The Edge Markets [.com]
ARTICLE AUTHOR: Reuters