Rubber advanced for a third day in Tokyo, tracking gains in Shanghai, as low inventory levels in China boosted optimism that the biggest consuming nation will need to replenish stockpiles.
Futures in Tokyo gained as much as 0.5 percent to 283.5 yen a kilogram ($3,255 a metric ton), reversing an earlier 1.5 percent decline. The most-active contract advanced 3.5 percent last week, the biggest increase since the week ended June 25.
“Rubber in Tokyo is tracking a rally on the Shanghai market after a report showed stockpiles remain low,” Navarat Kaewpratarn, senior marketing official at Future Agri Trade Co. said by phone from Bangkok.
Natural rubber stocks were 20,208 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the Shanghai Futures Exchange said Aug. 6. Inventories have plunged 87 percent from this year’s high of 151,832 tons on Jan. 21, according to data compiled by Bloomberg.
January-delivery rubber climbed 0.4 percent to 283.22 yen on the Tokyo Commodity Exchange as of 12:20 p.m. local time.
On the Shanghai Futures Exchange, January-delivery rubber gained as much as 1 percent to 24,945 yuan ($3,687) a ton and traded at 24,804 yuan by the 11:30 a.m. local-time break.
Natural rubber prices are likely to hover near current levels for the next two months because of tight supply and increasing demand, according to the International Rubber Consortium Ltd.
The average physical price in Thailand, Indonesia and Malaysia, the top three producers, may stay near $3 per kilogram over the next one to two months, Abdul Rasip Latiff, chief executive officer of the Bangkok-based group, said in an interview.
The free-on-board price of the benchmark Thai RSS-3 grade rubber for September-delivery, which excludes freight and insurance, dropped 0.2 percent to 104.50 baht ($3.28) a kilogram on Aug. 6, according to the Rubber Institute of Thailand.
(bloomberg.com)
No comments:
Post a Comment