The July-delivery contract gained as much as 1.2 percent to 532.7 yen per kilogram ($6,412) and was at 529.6 yen on the Tokyo Commodity Exchange at 11:22 a.m. Rubber reached a record 535.7 yen per kilo on Feb. 18.
Libyan security forces attacked anti-government protesters and Muammar Qaddafi’s son warned of the risks of a civil war. The nation has became the focal point of protest after violence flared in Yemen and Bahrain as governments cracked down on calls for reform sparked by uprisings in Egypt and Tunisia.
“A rally in oil gave support to rubber,” Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co., said today by phone. “Gains were limited by concern China may step up measures to curb inflation.”
China’s central bank announced an increase in reserve requirements for lenders last week, acting 10 days after boosting interest rates. Premier Wen Jiabao is tackling accelerating inflation and the risk of asset bubbles in the fastest-growing major economy.
The reserve ratios will be increased by half a percentage point from Feb. 24, the People’s Bank of China said on Feb. 18. Lending surged in January and inflation quickened as new home pricesrose in all but two of 70 cities monitored by the government, official reports showed last week.
Shanghai Record
In Shanghai May-delivery rubber gained 0.1 percent to 40,360 yuan ($6,142) a ton at 9:51 a.m. local time. The price climbed to a record 43,500 yuan on Feb. 9.
Rubber also gained as the low-output period is beginning in major growing areas in Thailand, the largest producer, Saito said. In some southern Thai estates, rubber trees have already started shedding leaves, leading to a halt in tapping, he said.
Farmers reduce tapping during the so-called wintering season, leading to lower latex production. Thai output drops as much as 60 percent from peak levels during the period, according to the Association of Natural Rubber Producing Countries.
Indonesia and Malaysia will enter the low-production period at about the same time. The two countries plus Thailand account for about 70 percent of global supply.
Rubber futures have gained 28 percent this year as demand outpaces supply after heavy rains and floods disrupted output in Southeast Asia. China’s passenger-car sales increased 16.2 percent to 1.53 million last month from a year earlier, the China Association of Automobile Manufacturers said on Feb. 18. The growth slowed from December’s increase of 18.6 percent.
The physical price of Thai rubber was at an all-time high of 196.30 baht ($6.41) a kilogram on Feb. 17 on optimism that demand will expand even as supply falls during the low-output season, according to the Rubber Research Institute of Thailand. Thai markets were closed on Feb. 18 for a national holiday. For the latest updates PRESS CTR + D or visit Stock Market news Today
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