Oct. 3 (Bloomberg) -- Rubber climbed, snapping a four-day losing streak, as data showed improvement in China’s economy, boosting speculation demand will grow from the largest consumer.
The contract for March delivery on the Tokyo Commodity Exchange rose 0.2 percent to end at 256.9 yen a kilogram ($2,631 a metric ton), rebounding from the lowest settlement since Aug. 8. The most-active contract has lost 15 percent this year.
China’s non-manufacturing purchasing managers’ index rose to 55.4 in September from previously reported 53.9 in August, according to a statement released today by the Beijing-based National Bureau of Statistics and the Federation of Logistics and Purchasing. A reading above 50 indicates expansion.
“Concerns about China’s economic slowdown are easing,” said Hideshi Matsunaga, an analyst at broker ACE Koeki Co. in Tokyo. “Futures are supported by speculation that demand from the nation will pick up.”
Natural-rubber consumption will climb 1.5 percent this year and 4.1 percent in 2014 from 11.04 million tons in 2012, Prachaya Jumpasut, managing director at the Rubber Economist Ltd., said at a conference in Indonesia yesterday. Rubber demand for tires are expected to gain 3.5 percent a year to 2020, Gerard Stapleton, head of Southeast Asia research at LMC International, said today at the conference.
Thai rubber free-on-board fell today for a seventh day, losing 0.6 percent to 78.25 baht ($2.51) a kilogram, according to the Rubber Research Institute of Thailand.
Markets in China are closed through Oct. 7 for National Day holidays.
--With assistance from Yoga Rusmana in Jakarta. Editors: Jarrett Banks, Brett Miller
#<281323.69672188.8.131.52.0.25># -0- Oct/03/2013 07:17 GMT