Rubber futures traded on the Shanghai Futures Exchange (SHFE) ended sharply higher on Friday (May 17, 2013) as the upbeat heavyweights largely triggered investors' enthusiasm on policy support.
The most actively traded contract for September delivery ended at 20,595 yuan/metric ton, up 665 yuan or 3.34%.
The State Council, or China's Cabinet, on Thursday published a list of 71 items that no longer require central government approval or now only require consent from lower-level authorities. The move is intended to lower the benchmark for market entry,deepen investment structure reform, give full play to the market's role in resource distribution and inspire enterprises to use their own power for development. It triggered market expectation that the domestic investment demand would increase accordingly.
Meanwhile, with physical supply being tight, some traders in Southeast Asia have managed to cope by buying rubber off record stockpiles in Qingdao for re-export and keeping shipments going even amid slow output in major producing countries, noted a Singapore-based dealer.
(Edited by Olivia, olivia@tireworld.com.cn)
