The price of rubber on the commodity markets has hit its highest level since September 22nd 2011 in Tokyo.
Writing for Bloomberg, reporters Aya Takada and Supunnabul Suwannakij explained that the 2.1 per cent advance to 325.9 yen (£2.66) per kilogram (kg) for July-delivery followed rising oil prices.
The value of rubber on the Tokyo Commodity Exchange is also believed to have been boosted by a weak dollar and optimism regarding a Greek bailout, while May-delivery rubber in Shanghai went up by 2.9 per cent to hit 29,170 yuan (£2,914) per ton. These changes are likely to eventually filter down to the market for products such as rubber sheeting.
Kazuhiko Saito, analyst at broker Fujitomi Co, told the news provider: "Optimism about the Greek bailout increased investor appetite for riskier assets. Rubber advanced in tandem with oil and other industrial commodities."
While physical prices were on the increase, Reuters revealed that bonded warehouse stock of rubber was sold at a discount in China due to high stock levels.
Thai STR20 rubber changed hands for $3.75 (£2.35) per kg in Qingdao, which is ten cents cheaper than the trading price in Thailand. Meanwhile, tyre-grade SIR20 was being sold for between $3.76 and $4.01 per kg, with global manufacturer Bridgestone among the buyers.
Author: Chris Taylor
9th January 2012
