Rubber bounces
TOKYO - Rubber advanced to an all-time high for a second day amid speculation record prices will not deter tiremakers from purchasing the raw material as auto sales continue to climb.
The July-delivery contract jumped as much as 2.2 percent to 515 yen a kilogram ($6,240 a ton) before settling at 513.9 yen on the Tokyo Commodity Exchange.
"Tire producers may have no other options but to increase rubber purchases, regardless of record prices, as they have to raise output to meet expanding demand," Hisaaki Tasaka, an analyst at Tokyo-based broker ACE Koeki Co, said on Thursday.
Rubber futures have gained 24 percent this year, extending last year's 50 percent rally, as rising car sales led by China and India boosted demand for tires.
Bloomberg News
(China Daily 02/11/2011 page17)
