Rubber prices rise following oil increments
London – Rubber prices were reported to be on the rise globally during the last trading week (9-13 February), thanks partly to a recent pick-up in crude oil prices. In its weekly report, India-based commodities trading company Geofin said that worries over demand from the tire sector continued to weigh on the market.
Geofin, however, also pointed to positive moves internationally, such as lean production PLEASE EXPLAINand recovery in crude oil prices. These trends, it said, allowed rubber prices to bounce back up from a mid-week low.
in its weekly report, Thai-based International Rubber Consortium (IRCo) said that rubber prices hadimproved on the back of investors' confidence, while the Japanese yen remained weak against the dollar.
However, rubber markets are expected to experience a decline in the coming week, as China will mark its week-long New Year holiday as of 18 Feb.
After this break, IRCo expects a continued rise in NR prices “as market sentiment and investors' confidence return on the back of steady global NR demand and lower NR supply in the market.”
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