Rubber in Tokyo slumped from a 30- year high while futures in Shanghai tumbled by the daily limit amid concern that China, the world’s largest user, may take additional steps to curb inflation. April-delivery rubber on the Tokyo Commodity Exchange declined as much as 4.3 percent to 362.8 yen per kilogram ($4,402 a metric ton) before trading at 364.9 yen at 11:49 a.m. Still, the contract is set for a weekly gain. The May-delivery contract in Shanghai lost as much as 2.6 percent to 35,790 yuan ($5,397) a ton. Commodities declined on speculation that China’s government may step up measures to contain growth in housing and consumer prices after inflation accelerated to a two-year high last month. Inflation quickened to 4.4 percent in October from 3.6 percent in September, the statistics bureau said yesterday. “China may raise interest rates to curb inflation, which could slow economic growth and raw-material demand,” Takaki Shigemoto, an analyst at JSC Corp. in Tokyo, said today by phone. Rubber futures also tumbled as “historically high prices may be weakening demand,” he added. Rubber in Tokyo climbed to 383 yen yesterday, nearing a record high of 388.9 yen reached Feb. 13, 1980. Futures in Shanghai advanced to a record at 38,920 yuan yesterday. Rubber futures in Tokyo have gained 32 percent this year as producers have had difficulty catching up with growing demand because of rain and flooding that disrupted latex output in Southeast Asian countries. “Considering tight fundamentals, an upward trend in rubber will remain intact in the medium term,” Shigemoto said. India Imports Natural-rubber imports by India, the fourth-biggest producer, may climb at least 18 percent this year as excess rain lowers output and tire demand increases in Asia’s second-fastest growing market for cars. Purchases in the year to March 31 may exceed 200,000 tons, from 170,048 tons a year earlier, Rajiv Budhraja, director general of the Automotive Tyre Manufacturers’ Association, a producers’ group, said in an interview yesterday. Recent floods and storms in Thailand are expected to damage 540,814 rai (213,821 acres) of rubber plantation land, government spokesman Watchara Kannikar said Nov. 9. That is equivalent to 4.5 percent of the country’s tappable area of 12 million rai, according to Bloomberg calculations. The cash price in Thailand climbed to a record as floods across two-thirds of the country damaged rubber trees and lowered output. The contract for ribbed smoked sheet gained 1.5 percent to 132 baht ($4.47) a kilogram yesterday. Prices may surge above 150 baht by the end of this year as demand remains robust while supply is limited, according to Supachai Phosu, deputy minister of agriculture and cooperatives. To contact the reporters on this story: Aya Takada in Tokyo at atakada2@bloomberg.net; Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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