TOKYO, Feb 9 (Reuters) - The Asian physical rubber market
held firm on Monday as traders watched buying by the world's
biggest consumer China, but trade was subdued with two of the top
three producers -- Malaysia and Thailand -- on holiday.

 Chinese consumers struck deals to buy more than 3,000 tonnes
of rubber for prompt shipment on Friday as the post-Lunar New
Year buying spree continued.

 China was short of material after many buyers defaulted on
shipments late last year as cash prices tumbled from a 56-year
high above $3 a kg hit in July, and they returned to the market
to take advantage of a price drop that accompanied the global
economic downturn. [ID:nSP96611]

 "There seem to be various reasons for the Chinese buying,"
said a dealer at a Japanese trading firm.

 "Some may be buying despite having inventories, others may
really be short of supply, and still others may be buying on
anticipation that the Shanghai market will extend its gains," he
said.

 Traders said how far the rubber market can extend gains will
also depend on how other commodities and financial markets react
to the U.S. government's economic stimulus measures, due out on
Tuesday.

 The market was also supported as the wintering dry season
which typically starts in eastern Thailand at the end of January,
sets in, propping up prices for rubber from the world's top
producer.

 PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH FRIDAY

 Grade                                Price         Change

 Thai RSS3 (Mar)                        N/A           N/A

 Thai RSS3 (Apr)                        N/A           N/A

 Thai STR20 (Mar)                       N/A           N/A

 Thai STR20 (Apr)                       N/A           N/A

 Malaysia SMR20 (Mar)                   N/A           N/A

 Malaysia SMR20 (Apr)                   N/A           N/A

 Indonesia SIR20 (Mar)                  N/A           N/A

 Indonesia SIR20 (Apr)                  N/A           N/A

 Thai USS3                              N/A           N/A

 Thai 60-percent latex (drums, Mar)     N/A           N/A

 Thai 60-percent latex (bulk, Mar)      N/A           N/A

 ** NOTE - The prices quoted above are offer prices collected
from traders in Thailand, Indonesia and Malaysia. They are not
official prices quoted by state-run rubber agencies in those
countries.

Source: Reuters

Comments are closed.