This entry was posted on Tuesday, January 27th, 2009 at 7:59 pm and is filed under Rubber News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
TOKYO, Jan 27 (Reuters) – Tokyo rubber futures were mostly
firmer on Tuesday as weakening yen boosted market sentiment after
the market rallied almost 3 percent the previous day.
* The dollar rose 0.5 percent to 89.57 yen on news of
a government plan to buy shares of companies whose capital has
been seriously hurt by the financial crisis. [USD/] [ID:nT89837]
A weaker yen inflates yen-based rubber prices.
* Moves by main rubber producers to slash exports and recent
purchases by China, the world’s biggest rubber consumer, continue
to lure investors to the Tokyo Commodity Exchange market.
* TOCOM rubber contracts were higher, with rises ranging from
0.3 yen to 1.9 yen per kg, except for the newly listed one for
July delivery <0#JRU:>, which inched lower to 139.9 yen after
opening at 140.0 yen.
* The TOCOM market has been on the rise after hitting a
four-week low on Friday. The then benchmark June contract stood
at 138.9 yen by the midday close on Tuesday, off Friday’s low of
134.8 yen.
*The world’s top three rubber producing countries are
starting to cut exports of 270,000 tonnes in the first quarter —
around 5 percent of annual shipments — as agreed in December to
shore up prices. [ID:nBKK192808]
* The physical market remained quiet on Tuesday, with China
observing the Lunar New Year holidays throughout this week. Many
dealers in Southeast Asian producing countries refrained from
trading as the Singapore and Malaysian markets stay closed for a
second day due to the Lunar New Year.
* But with the global economy in recession, and the auto
industry cutting output, slack demand for tyres will limit price
gains, traders said.
* Shares in Continental fell 17 percent on Monday
as expectations that the German auto parts supplier would seek
state aid added to investor unease after news it was losing its
financial chief and capping dividends. [ID:nLQ268888]
* The auto sector consumes 60 percent of world natural rubber
output of around 9 million tonnes.
PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH MONDAY
Grade Price Change
Thai RSS3 (Feb) $1.52/kg N/A
Thai RSS3 (Mar) $1.52/kg N/A
Thai STR20 (Feb) $1.46/kg N/A
Thai STR20 (Mar) $1.46/kg N/A
Malaysia SMR20 (Feb) N/A N/A
Malaysia SMR20 (Mar) N/A N/A
Indonesia SIR20 (Feb) $0.67/lb N/A
Indonesia SIR20 (Mar) $0.67/lb N/A
Thai USS3 46 baht/kg N/A
Thai 60-percent latex (drums, Feb) $1,150/tonne N/A
Thai 60-percent latex (bulk, Feb) $1,050/tonne N/A
Source: Reuters