Tuesday, 16 November 2010

Rubber prices at 30-year high

Rubber prices have this week hit a 30-year high, causing tyre makers to raise their prices by 10pc to 15pc.
Futures on the benchmark Tokyo commodities index surged to $4,661 per tonne, their highest since February 1980, and cash prices in Thailand climbed to an all-time record. Forecast rain is likely to worsen a supply shortage and Chinese inflation boosted demand across the commodity sector.

According to technical analysts from ProSpreads: "The fundamental reasons for rubber's recent gains are clear and evident: increased car sales in China, coupled with bad weather across South-East Asia, further squeezing supply. It would take a brave speculator to sell into this rally."


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