Markets

Rubber extends gains

(China Daily)
Updated: 2010-12-31 10:31

TOKYO - Rubber extended gains to post a second straight annual advance on concern that a shortage may worsen early next year as top exporter Thailand enters a low-production period known as wintering.

Related readings:  Hainan Rubber rounds off big year for China IPOs  China's rubber sector stretched to the limit  Rubber hits 2-year high  Rubber slumps as strength of dollar cuts appeal

The June-delivery contract added as much as 0.9 percent to 414.8 yen per kilogram ($5,094 a ton) on the Tokyo Commodity Exchange and closed at 414.5 yen on Thursday, bringing this year's gain to 50 percent. Rubber futures declined earlier as China, the world's biggest consumer, may take measures to curb speculation, said Toshimitsu Kawanabe, an analyst at commodity broker Central Shoji Co.

Supply of natural rubber from nine producers representing 92 percent of global output is expected to fall 6.3 percent in the fourth quarter, the Association of Natural Rubber Producing Countries said in its monthly bulletin.

Bloomberg News