Rubber price increases as improved car sales raise tire demand

Thursday, November 5, 2009

According to an article in bloomberg.com by Aya Takada, "Rubber increased for the first time this week as improved car sales in the U.S. boosted speculation that demand will grow for the commodity used in tires. Futures in Tokyo soared as much as 3.2 percent, the largest increase since October 30. U.S. October auto sales improved from a 23 percent slide the previous month, with the seasonally adjusted annual rate exceeding a pace of 10 million for the first time without the benefit of federal rebates, research company Autodata Corp. said yesterday [November 3]. “The market is factoring in a recovery in auto sales,” Takaki Shigemoto, a commodity analyst at research and investment company JSC Corp., said today [November 4] by phone. “Consumer demand for fuel-efficient cars may push up sales further.”