Rubber prices rebounded and rose more than 1% in trading this morning, Friday (12/1/2018), driven by optimism around global growth.
The price of rubber for delivery in June 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 1.64 percent, or 3.40 points, to 210.30 yen per kilogram (kg) at 10:27 pm.
Previously, June's rubber contract price opened with only 0.05% increase or 0.10 point at 207 level, after trading on Thursday (11/1) ended down 0.24% at position 206.90.
According to Takaki Shigemoto, an analyst at research firm JSC, rubber prices are fueled by optimism about global growth and demand from tire manufacturers.
"Thus, investor interest is encouraged to the rubber market," he added, as quoted from Bloomberg.
China's automotive sales performance in 2018 is expected to rise 3% to around 30 million units by 2018, according to the China Association of Automobile Manufacturers. Meanwhile, passenger vehicle sales in India reportedly rose 5.2% (y-o-y) to 239,712 units in December 2017.
On the other hand, China's economy is expected to grow around 6.9% by 2017, accelerating from its lowest level in 26 years recorded in the previous year.
According to Chinese Prime Minister Li Keqiang, China's economy has maintained a steady and good trend last year, with an overall better-than-expected situation.
Rubber prices are able to rebound although at the same time appreciation of yen currency performance continues. The yen today tracked 0.01 points, or 0.01%, to 111.25 per dollar at 10:33 am, after ending up 0.16% at 111.26 on Thursday. .
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