Benchmark Tokyo rubber futures rose on Friday, tracking gains in Shanghai futures, on falling output and market expectation for stronger demand after the Chinese New Year holiday. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, were also boosted by hopes of a trade deal between Beijing and Washington.
"The upstream producers have slowed down rubber tapping. Tyre plants are expected to restart operation after the Spring festival holiday, and market was seeing stronger demand," said Li Dongling, senior analyst with First Futures. The Tokyo Commodity Exchange rubber contract for July delivery finished 1.2 yen ($0.0110) higher at 179 yen per kg.
TOCOM's technically specified rubber (TSR) 20 futures contract for August delivery rose 4.4 yen from its open price, to close at 151.3 yen per kg. The most-active rubber contract on the Shanghai futures exchange for May delivery rose 95 yuan ($14.09) to finish at 11,420 yuan per tonne. The front-month rubber contract on Singapore's SICOM exchange for March delivery last traded at 133.5 US cents per kg, up 1.3 cent.
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