Rubber poised for bull market
- Published: 26 Aug 2013 at 11.04
- Online news:
Rubber in Tokyo was set to enter a bull market as futures jumped to a three-month high on signs China's economy is regaining strength, boosting demand for the commodity used in tyres.
Rubber for delivery in January advanced as much as 3.2% to 278 yen a kilogramme (2,817 a metric tonne) on the Tokyo Commodity Exchange, a 22% gain from this year’s lowest close for a most-active contract of 227.2 yen reached June 26.
Rising prices may boost costs for Bridgestone Corp, Michelin & Cie and Goodyear Tire & Rubber Co, the biggest tyremakers, and help farmers in Thailand after the economy in the largest producer nation entered recession. Chinese manufacturing expanded this month after shrinking the most in almost a year in July, while output from European factories and services companies improved.
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