• Home

  • Rubber

  • Plastic

  • Contact

Search:

Mar 24: Asia Rubber-Prices jump on resumed buying, tight supplies

BANGKOK, March 24 (Reuters) – Rubber prices jumped at least 33 percent this week as tyremakers returned to the market and resumed buying after falls to levels they found acceptable, traders said on Thursday.
Prices dropped sharply earlier this month because of worries abuot demand in the global economy after unrest in the Middle East and a massive earthquake in Japan, but they rallied from late last week.
But with supply now in the world’s top two major producing countries, Thailand and Indonesia, remaining tight, traders said prices could stay around current relatively firm levels for at least a month.
The benchmark Thai smoked rubber sheet (RSS3) was traded at $5.60 to $5.80 per kg for April shipment. That was at least 33 percent above $4.18 to $4.20 per kg last week.
Indonesia SIR20 block rubber was traded at $5.23 per kg, up from last week’s $4.0 per kg
“Prices were higher but they kept buying, especially major tyremakers such as Bridgestone, showing that demand remained strong,” said a Singapore-based trader.
Traders said major tyremakers were looking for 2,000 tonnes of smoked rubber sheet (RSS3) at a price of $5.80 per kg, but exporters were reluctant to strike a deal despite that price as they were unsure they could get supplies for delivery.
Physical rubber prices moved in line with Tokyo futures prices, which surged to a record high of 535.7 yen per kg in mid-February before passing through a volatile corrective phase since early March.
Physical prices also pulled back over the same period from a record high of $6.40 per kg for the Thai benchmark.

TIGHT SUPPLY
Rubber output was expected to remain tight for at least a month as Thailand, the biggest producer, is still in the dry season, when rubber trees stop producing latex and farmers halt tapping.
In Indonesia, the second-biggest producer, production has also dropped significantly as its main rubber areas have been hit by heavy rain, which disrupts tapping.
“Farmers in Thailand normally resume tapping in late April, but they would need up to a week to produce export-grade rubber sheet, which means supply could get back to normal roughly in May,” said a trader at Thailand’s Hat Yai rubber centre.
Traders said rubber prices were expected to stay at a relatively high level, probably above $5.0 per kg, until then.
“Prices may ease but they will not drop very sharply or fast as people who stopped buying when prices were high are likely to resume buying and could buy heavily to replenish stocks, especially the Chinese,” an Indonesian trader said.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 5.9 percent from early March, according to the exchange. [ID:nEMS011021]

Source: Reuters

Share this:

  • Twitter
  • Facebook

« Mar 24: Tokyo futures higher, profit-taking caps gains
Mar 25: Rubber Declines on Concern Demand May Fall Amid China Policy Tightening »

This entry was posted on Thursday, March 24th, 2011 at 5:07 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.

Comments are closed.


  • Useful Links

    • Physical FOB Price
    • SHFE Rubber Price
    • SICOM Rubber Price
    • TOCOM Rubber Price
www.uyong.com
© copyright 2008
Entries (RSS)