Rubber Journal Asia

Rubber prices reach an all-time high
Rubber prices reached an all-time high in 15 months, in line with the global recovery expected this year, according to a recent report.

Futures in Tokyo gained as much as 3.3% to the highest level since September 2008. In China, the world’s largest rubber consumer, businesses continued to expand while US manufacturing continued to expand and factory bookings increased.

Investors are buying the raw material on a speculative run against the back of better economic conditions while rising car sales in China will push the price of the commodity up since it is mainly used in tyres.

Prices more than doubled last year, the best performance since at least 1976, according to Bloomberg. Raw materials may return more than financial assets this year for the first time in three years as the global economy rebounds, according to Bloomberg.