Key Tokyo rubber futures ended higher on Monday after news that Asean's rubber group will take tough action on buyers who default on shipments, prompting some traders to say the contract could rise to 300 yen as supply concerns mount in China. The key Tokyo Commodity Exchange rubber contract for May delivery settled up 1 percent, or 2.8 yen, at 283.6 yen after rising as high as 286.4 yen, up 5.6 yen.
The most active Shanghai rubber contract for May delivery closed up 0.5 percent at 26,025 yuan per tonne. Volume stood at 702,138 lots. "With producing nations threatening to squeeze supply, buyers in China will have a hard time obtaining rubber at a time when production is decreasing due to the rainy season (in Southeast Asia) and as demand in China rises ahead of the Chinese New Year in January," a trader said.
He said the benchmark contract would test the 300 yen mark by the end of December. The Asean Rubber Business Council has blacklisted buyers who default on shipments and has urged members to ignore requests for discounts following a plunge in prices, the group said in a statement seen on Monday.
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