The biggest restrictions on rubber exports since 2009 and record consumption are sending prices back to a bull market after a five-month slump, increasing costs for Bridgestone Corp. and other tiremakers.
Thailand, Indonesia and Malaysia, representing about 70 percent of global natural-rubber supply, agreed steps to boost prices, said Yium Tavarolit, chief secretary of the International Rubber Consortium Ltd.
Thailand, the largest rubber exporter, reaffirmed a plan to drive local prices to 120 baht ($3.87) a kilogram by buying up supplies, while announcing its intention to push them as much as 50 percent higher than that.
Rubber climbed to the highest close in more than a week, advancing for a third day, on speculation that China may take additional steps to boost its economy, while Thailand expands a government price-support program.
Rubber shortages are about to turn into a flood as China, the biggest consumer, grows at the slowest pace in three years, driving prices paid by Bridgestone Corp. and other tiremakers to the lowest since 2009.
Thai security forces stopped anti- government protesters from rallying north of the capital in clashes that killed one soldier, raising tensions in a seven- week standoff that has paralyzed Bangkok’s commercial center.
Thailand’s baht rebounded from a seven-week low, stocks rose and bond risk fell as the government said it is willing to reopen talks on holding an early election to help bring an end to six days of gun battles in Bangkok.