Posted 11 months ago on Nov. 2, 2013, 4:41 a.m. EST by effiebutler
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Chase Franklin International Tokyo Japan, Rubber Advances in Tokyo Amid Optimism for Chinese Demand
Rubber increased amid optimism that improvement in the Chinese economy may boost demand from the world’s largest consumer. The contract for delivery in April, which began trading yesterday on the Tokyo Commodity Exchange, gained as much as 0.9 percent to 262.3 yen a kilogram ($2,687 a metric ton) and was at 261.6 yen at 11:02 a.m.
Speculation grew that China may take additional steps to sustain growth in the world’s second-biggest economy as the Communist Party will hold a summit meeting in November, said Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo. China’s manufacturing strengthened more than forecast this month, data from HSBC Holdings Plc and Markit Economics showed Oct. 24.
“Futures were supported by optimism about Chinese demand,” he said by phone today.
China’s rubber industry urged the National Development and Reform Commission to scrap a 20 percent tax on natural rubber imports, the National Business Daily reported yesterday, citing unidentified people from tire companies as saying.
Crude rubber stockpiles held at Japanese warehouses fell 2.7 percent to 4,386 tons on Oct. 10, according to data today from the Rubber Trade Association of Japan.
Rubber for January delivery on the Shanghai Futures Exchange rose 0.2 percent to 19,405 yuan ($3,189) a ton. Thai rubber free-on-board declined 1.3 percent to 78.15 baht ($2.51) a kilogram yesterday, according to the Rubber Research Institute of Thailand.