Rubber prices closed higher in late trading today, Thursday (05/17/2018), amid speculation rising demand.
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.74% or 1.4 points to 189.90 yen per kilogram (kg).
Earlier, commodity prices also opened in the green zone with a gain of 0.11% or 0.2 points at 188.7, after ending up 0.21% or 0.4 point to 188.4 in Wednesday's trading (16 / 5/2018).
Gu Jiong, an analyst with commodity broker Yutaka Shoji, said today's gains in rubber prices are driven by speculation of rising demand.
"There is speculation that low prices will increase demand for rubber from tire manufacturers as car sales in China are increasing," he said, as quoted by Bloomberg.
Known, car sales figures in China grew 11.2% in April, compared to the same period the previous year.
Gu added that the weakening Japanese yen against the US dollar and the strengthening of crude oil prices also contributed to the price of rubber.
The yen today tracked down 0.16 percent or 0.18 points to 110.58 yen per dollar at 13.15 pm.
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