Markets

Rubber rises to new high

(China Daily)
Updated: 2010-07-09 11:35

Rubber advanced to a one-week high after a US trade group said that retail sales increased at the fastest pace in four years, stoking optimism that demand for the commodity used in tires may strengthen.

Related readings:  Rubber climbs for second day  Rubber set to decline  Rubber prices bounce  Rubber shows its elasticity as market prices bounce about

Futures in Tokyo climbed as much as 2.6 percent to the highest level since June 29. The price also increased as an advance in oil boosted the appeal of natural rubber as an alternative to synthetic products made from petroleum.

December-delivery rubber gained as much as 6.9 yen to 277 yen per kilogram ($3,136 a metric ton) before settling at 276.3 yen on the Tokyo Commodity Exchange.

November-delivery rubber on the Shanghai Futures Exchange added 1.7 percent to settle at 22,105 yuan ($3,262) a ton.

Bloomberg News