Rubber futures traded near 173 US cents per kilogram, holding close to their highest since late October, mainly driven by supply concerns.

Top rubber producer Thailand’s meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows in its weather forecast from November 17-23.

The southern provinces, where rubber production is concentrated, are expected to be the hardest hit.

Meanwhile, demand prospects remain subdued, with Chinese automakers warning of slower growth amid a prolonged price war and intensifying competition in the world’s largest auto market.

Reduced automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.

Source : tradingeconomics.com