Rubber soars on robust demand
China Daily | Updated: 2009-12-17 08:02
TOKYO: Rubber gained the most in four months on speculation rising car sales will boost demand for tires and lower tariffs may increase imports by China, the world's largest consumer.
Futures in Tokyo surged 4.2 percent, the biggest daily increase since Aug 24, after China's Ministry of Finance said it would cut tariffs on natural rubber imports in 2010. European car sales surged 27 percent last month, according to the European Automobile Manufacturers' Association.
"News about China is positive for the market as its tariff reduction may stimulate imports," said Hisaaki Tasaka, an analyst at Tokyo-based commodity broker ACE Koeki Co. "Rising car sales also raised speculation that rubber demand from tire makers will increase."
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