Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Rubber Advances as Exporters May Continue Supply Restrictions

Feb. 28 (Bloomberg) -- Rubber rebounded from the lowest level since December, paring the first monthly loss in four, after a group representing the three largest exporters said it may extend shipment restrictions to support prices.

The contract for delivery in August advanced 1.7 percent to 295.3 yen a kilogram ($3,191 a metric ton) before ending at 293 yen on the Tokyo Commodity Exchange. Futures lost 7.2 percent this month, the worst performance since June.

Thailand, Indonesia and Malaysia may extend export cuts if prices drop below $3 per kilogram when the program ends in March, Darmansyah Basyaruddin, chief executive officer at the International Rubber Consortium, told reporters at seminar in Jakarta yesterday. The price in Tokyo dropped to 284.8 yen yesterday, the lowest since Dec. 21.

“Caution about supply restrictions prevented further losses in rubber futures,” Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo, said by phone today.

Thailand, the largest producer, agreed with Indonesia and Malaysia last year to cut exports by a combined 300,000 tons in the six months through March. The action came after prices slumped to an almost three-year low of 205.6 yen in August.

Futures also gained after data showed Japan’s industrial production rose for a second month in January, boosting speculation demand will grow, Shigemoto said. Output climbed 1 percent from December, when it rose 2.4 percent, according to the trade ministry.

The contract for September delivery on the Shanghai Futures Exchange added 0.8 percent to close at 24,710 yuan ($3,972) a ton. Thai rubber free-on-board gained 0.6 percent to 89.2 baht ($3.00) a kilogram today, according to the Rubber Research Institute of Thailand.

To contact the reporter on this story: Aya Takada in Tokyo at atakada2@bloomberg.net

To contact the editor responsible for this story: Brett Miller at bmiller30@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.