Oct. 28 (Bloomberg) -- Rubber climbed as Japan’s currency weakened, increasing the appeal of yen-denominated futures, and on optimism that China’s economic growth will improve, boosting demand from the largest user.
The contract for delivery in March on the Tokyo Commodity Exchange climbed 0.4 percent to settle at 257.5 yen a kilogram ($2,638 a metric ton) after falling 4 percent last week.
The yen slid 0.2 percent to trade at 97.59 per dollar after two weeks of advances. China’s economy may grow about 7.5 percent as long as macroeconomic policies remain stable, the People’s Daily reported today, citing Pan Jiancheng, a deputy director of the China Economic Monitoring and Analysis Center of the National Bureau of Statistics.
“A weaker yen and optimism of increasing Chinese demand give a boost to the rubber market,” said Megumi Saito, trader at commodity broker Yutaka Shoji Co.
China’s rubber industry urged the National Development and Reform Commission to scrap a 20 percent tax on natural rubber imports, the National Business Daily reported today, citing unidentified people from tire companies as saying.
Rubber for January delivery on the Shanghai Futures Exchange dropped 0.2 percent to close at 19,360 yuan ($3,181) a ton. Thai rubber free-on-board declined 1.3 percent to 78.15 baht ($2.51) a kilogram today, according to the Rubber Research Institute of Thailand.
--Editors: Jarrett Banks, Brett Miller