Rubber prices continued to strengthen at the end of trading the second day in a row, Friday (13/4/2018), following reports of rising global demand beyond global supply.
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.98% or 1.80 points at 184.80 yen per kilogram (kg).
This morning the rubber price opened with a 0.16% rise or 0.30 points at 183.30, after successfully rebounding and ending up 0.60% or 1.10 points at 183 level in trading on Thursday (12/4).
The Association of Natural Rubber Producing Countries (ANRPC) said global demand for natural rubber rose 7.6% y / y to 3.36 million tonnes in the first quarter.
On the other hand, global supply grew 3.3% y / y to 3.15 million tonnes in the first quarter.
Meanwhile, according to Sunward Trading analyst Hideshi Matsunaga, rubber prices recovered as the Tokyo exchanges look oversold compared to the physical rubber market.
"The low production season in Thailand as well as the depreciation of the yen against the US dollar also gave a boost," added Matsunaga.
Today's yen exchange rate continued to weaken 0.29% or 0.31 points to 107.64 position per US dollar at 13:49 pm, having ended weakened 0.51% or 0.54 pound at level 107.33 on Wednesday (12/4).
As is known, the movement of rubber prices is usually inversely proportional to the yen. Yen breaking gives fresh air for rubber and can lift the price of this commodity with the potential increase of demand from buyer.
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