Rubber prices may slide further on weak demand<\/p>\n
SINGAPORE (Reuter): Southeast Asian rubber prices, which have
\nbeen battered for weeks by soft demand, may slide further because
\nof continuing weak consumer interest, regional traders said
\nyesterday.<\/p>\n
\"It's probably going to be flat again,\" a Singapore-based
\ndealer working for a Western commodity house said. \"If no firm
\nofftake emerges, you'll see prices drifting down again.\"<\/p>\n
\"Prices are likely to slide further this week. The Europeans
\nare back from the summer holidays, but I don't know why they are
\nnot buying,\" a dealer at a Malaysian trading firm said.<\/p>\n
\"Probably they are waiting for lower prices or have sufficient
\ncarry-over stocks to continue with their operations.\"<\/p>\n
Dealers were offering SMR CV at 369-369 Malaysian cents, SMR L
\nat 348-349 cents, SMR 5 at 318-320 cents and SMR 10 at 308 cents
\na kg. Drum latex was seen around 237-240 cents a kg.<\/p>\n
The Malaysian benchmark Oct RSS1 closed on Friday at 313.50
\ncents a kg against 324.50 cents a week earlier, and Oct SMR 20
\nwas at 307 cents against 313 cents.<\/p>\n
Indonesian rubber prices are likely to also stay soft this
\nweek on the back of continued weak demand and adequate supplies,
\ndealers said.<\/p>\n
\"Indonesian rubber, including the benchmark SIR20, is likely
\nto stay soft,\" one Jakarta-based dealer said.<\/p>\n
SIR20 offer prices for October\/November shipments are likely
\nto remain weak at 55.50-56.00 U.S. cents\/lb FOB Medan and at
\n55.25-55.75 cents FOB Palembang, Surabaya and Padang, and at
\n55.00-55.50 cents FOB Jambi and Pontianak, traders said.<\/p>\n
Dealers said RSS1, SIR3CV, SIR3L, SIR10 and SIR5 are also
\nlikely to stay soft in the coming days due to lackluster demand.<\/p>\n
RSS1 last traded at 133 U.S. cents\/kg on Thursday, down from
\nthe previous 135 cents\/kg following Japanese buying for early
\nNovember deliveries, one Medan-based dealer said.<\/p>\n
SIR3L is also expected to stay soft following U.S. buying of
\nSIR3L at 137.65 cents\/kg C&F New York on Thursday compared with
\n139 cents previously, a dealer in the Indonesian capital of
\nJakarta explained.<\/p>\n
Offer prices for high ammoniac grade latex with 60 percent dry
\nrubber content were seen edging higher by 10 to 25 rupiah to
\n2,240 to 2,260 rupiah in the markets of Bandung and Tangerang
\nthis week on expectations of good demand.<\/p>\n
In Thailand, rubber prices eased slightly last week in a
\nmarket packed with sellers and few buyers, trade sources said.<\/p>\n
Thai benchmark RSS3 for October shipment was quoted around
\nUS$1.25 a kg last week, compared with $1.26-1.29 the previous
\nweek. Latex also dipped and was quoted at around $0.99\/kg from
\n$1.02 the week before.<\/p>\n
High stocks in Japan and rising supply continues to pressure
\nthe market, industry sources said.<\/p>\n
\"Asians, particularly the Chinese, are not buying from us but
\nthey are taking Thailand RSS3 sheet rubber which is slightly
\ncheaper or at par with SMR 20,\" a Malaysian dealer said.<\/p>\n
\"Technically, the market has not seen the bottom yet and with
\nthe lack of demand, we think prices will come down again,\" a
\ntrader in the Malaysian capital of Kuala Lumpur said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rubber-prices-may-slide-further-on-weak-demand-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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