Tokyo rubber futures rose modestly on Tuesday, supported by firm oil prices, but concern about Europe's debt crisis weighed on the market, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery rose 4.5 yen, or 1.7 percent, to settle at 271.3 yen ($3.48) per kg.
Dealers said TOCOM prices could rise further on Wednesday after prices finished above major resistance at 270 yen per kg, although the European concerns would hold the market down still. Global demand for rubber, both natural and synthetic, is forecast to reach 27.2 million tonnes in 2012 versus 25.7 million tonnes in 2011, the International Rubber Study Group said on Tuesday. Global natural rubber demand is expected to rise 4.6 percent next year, while synthetic rubber demand could rise 5.5 percent, the IRSG said in a statement. It gave no further details.