BANGKOK: Rubber advanced for the first time in four days as rains disrupted latex tapping in Thailand, the world’s biggest producer, and a rally in crude oil improved the appeal of the commodity used in tires and gloves.
December-delivery rubber gained as much as 1.2% to 247.3 yen or US$3,118 a metric ton on the Tokyo Commodity Exchange before settling at 246.3 yen. That pared this year’s loss for the most-active contract to 6.5%.
Supplies have declined as heavy rains persist in Thailand’s southern region, which accounts for 80 percent of output, the Rubber Research Institute of Thailand said on its website today.
“Rains in southern Thailand and gains in crude oil are supporting prices,” Ker Chung Yang, an analyst at Phillip Futures Pte., said by phone from Singapore.
Industrial production in the euro area probably failed to grow in May after two months of decline, according to the median estimate of economists in a Bloomberg survey before the European Union’s statistics office publishes the data today.
Data tomorrow may show growth in China’s second-quarter gross domestic product and retail sales for June slowed, according to estimates by analysts in separate Bloomberg surveys.
World natural-rubber consumption will expand less than previously forecast this year as the slowdown in China, the top consumer, and Europe’s debt crisis reduce growth, according to the International Rubber Study Group.
Rubber for September delivery closed unchanged at 23,880 yuan or US$3,748) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board fell 1% to 98.85 baht or US$3.11 a kilogram today, said the Rubber Research Institute. (Bloomberg/T03/TW)