Poor sentiment to dominate rubber market<\/p>\n
SINGAPORE (Reuters): Asia's rubber trade is expected to stay
\nstatic this week with demand poor and some suppliers holding back
\nstocks, regional traders said yesterday.<\/p>\n
\"If you buy raw material from Indonesia or Thailand, it's very
\ncheap,\" said a Singapore-based rubber trader.<\/p>\n
\"But suppliers there are not selling cheap. They know the
\nmargin is high to buy cheap raw material. They are not very eager
\nto sell,\" the trader added.<\/p>\n
One of the main consumers emerged to bid for June supplies at
\nlow prices last week but could not find suppliers, another trader
\nin Singapore said.<\/p>\n
China was heard to place some inquiries, but buyers on the
\nmainland were not keen to strike a deal, the trader said.<\/p>\n
Market focus would be on the political and economic situation
\nin Indonesia after its key election this week, traders said.<\/p>\n
Security has been tightened across the archipelago as the
\ncountry's highest body, the People's Consultative Assembly (MPR),
\ngathers in Jakarta to elect a president.<\/p>\n
President Soeharto is expected to be re-elected for a seventh
\nfive-year term.<\/p>\n
\"For sure prices will fall further this week. We don't know
\nexactly why buyers are hiding, but there are talks it may be
\ncaused by political concern,\" said one trader in Padang, West
\nSumatra, Indonesia.<\/p>\n
\"Buyers may be afraid to buy rubber because of fear traders
\ncannot fulfill their commitments if something bad happens here,\"
\nthe trader said.<\/p>\n
May tire-grade SIR20 finished last week in Medan, Surabaya and
\nPalembang at 34.75 U.S. cents\/lb, at 34.00 in Padang and at 33.75
\nin Pontianak and Jambi.<\/p>\n
\"The rupiah movement makes players stay at the sideline. The
\nsentiment is very bearish and buying interest is very poor,\" said
\none trader in Jakarta.<\/p>\n
In Thailand, the market remained weak last week on sluggish
\ndemand, partly on news the government planned to sell 89,000
\ntons in its stockpile to local exporters, traders said.<\/p>\n
\"It is quite hard to predict when prices will stabilize as we
\nare still seeing weak prices in Tokyo,\" said a trader from a
\nmajor house in Bangkok.<\/p>\n
\"The market is in a downtrend so there is not much trading and
\npeople are cautious,\" the trader said.<\/p>\n
Thai RSS3 for nearby shipment was quoted around 70-71 U.S.
\ncents a kg FOB Bangkok on Friday.<\/p>\n
In Malaysia, a lack of demand and news of the Thai
\ngovernment's plan to sell rubber stockpile dragged prices lower,
\ntraders said.<\/p>\n
\"There are no buyers in the market. They preferred to wait for
\nattractive levels,\" said a dealer at a trading firm in Thailand.<\/p>\n
\"On top of that, sentiment was further dented by the Thai
\nnews,\" the trader said.<\/p>\n
In the absence of overseas demand, activity was confined to
\nhand-to-mouth basis, dealers in Malaysia said, adding that the
\nmarket only saw buyers negotiating on price levels.<\/p>\n
At the end of last week, the Malaysian Rubber Board quoted the
\nRSS1 buyer for April at 282.50 Malaysian cents (70 U.S. cents) a
\nkg and the April SMR20 buyer was priced at 295.50 cents a kg.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/poor-sentiment-to-dominate-rubber-market-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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