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Rubber Gains From One-Month Low as U.S. Auto Sales Beat Estimate

June 4 (Bloomberg) -- Rubber rebounded from the lowest level in a month after data showed U.S. auto sales expanded more than analysts’ estimates, raising speculation demand will increase for the commodity used in tires.

Rubber for delivery in November on the Tokyo Commodity Exchange advanced 1.7 percent to settle at 261.4 yen a kilogram ($2,606 a metric ton). Yesterday it fell to the lowest since May 2. Futures pared this year’s losses to 14 percent.

U.S. light-vehicle sales climbed 8.2 percent to 1.44 million units last month, according to Woodcliff Lake, New Jersey-based Autodata. Deliveries topped the 1.43 million average estimate of 10 analysts surveyed by Bloomberg.

“The market drew support from better-than-expected U.S. data,” Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo, said by phone today.

Thai rubber free-on-board was unchanged at 88.40 baht ($2.90) a kilogram today, according to the Rubber Research Institute of Thailand.

Rubber for delivery in September on the Shanghai Futures Exchange gained 1.1 percent to close at 19,155 yuan ($3,126) a ton. Natural-rubber inventories dropped for a fourth week, by 0.6 percent, to 114,225 tons, the bourse said on May 31, based on a survey of nine warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, according to the exchange.

Supplies in the coming week are expected to remain tight even as the recent wintering season in northern Indonesia, Malaysia and Thailand finished earlier this month, according to the International Rubber Consortium Ltd., which represents growers and exporters from the three countries.

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

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