SE Asian rubber prices climb up on better demand<\/p>\n
SINGAPORE (Reuter): Southeast Asian rubber prices, bedeviled
\nfor weeks by poor consumption, are seen edging up on the back of
\nfresh demand expected to come in ahead of the summer holiday
\nseason, regional dealers said yesterday.<\/p>\n
\"I think prices will keep their upward momentum this week,\"
\none trader in Indonesia said. \"Demand is expected to be better,
\nbut I don't expect any significant improvement.\"<\/p>\n
\"The summer holiday season is approaching soon and many
\nEuropeans are seen building up their stocks,\" a dealer at a
\ntrading firm in Malaysia added.<\/p>\n
Traders in Thailand, the world's biggest producer of natural
\nrubber, said their high offer prices may drive customers to
\nMalaysia and Indonesia over the next few weeks.<\/p>\n
China and Japan bought modest amounts of Thai rubber last
\nweek, but prices in other origins were more attractive, dealers
\nsaid. Sales of lower grade smoked sheet rubber were also
\ndepressed due to the virtual absence of China in the market.<\/p>\n
\"Unless the prices dip from current levels, I don't expect to
\nsee active buying interest near-term.\" said one Bangkok-based
\ntrader. \"Buyers are likely to go elsewhere.\"<\/p>\n
The Thai benchmark RSS3 grade rubber was quoted around 116.00
\nU.S. cents a kg for July shipment and at 116.50 cents for August
\nshipment.<\/p>\n
Dealers in Singapore, however, were cautious about any
\nsubstantial move up in prices.<\/p>\n
\"The market may have a chance to move slightly higher, but the
\nmarket doesn't really have a great deal of strength. Production
\nis moving up after wintering and we don't really see a lot of
\nfresh leads,\" one dealer said.<\/p>\n
Indonesian dealers said the conclusion of the recent
\nelections, which were marred by some of the worst violence in the
\ncountry in three decades, should help sentiment after most of the
\ntrade stayed on the sidelines for most of the campaign.<\/p>\n
\"I think prices will edge up this week, with some demand
\ncoming in,\" one trader said. \"With the elections out of the way,
\nI think sentiment will improve.\"<\/p>\n
Traders said SIR20 grade rubber offers were higher by an
\naverage of 0.25-0.50 cents at 48.50-49.00 U.S. cents\/lb FOB
\nMedan, 48.00 cents FOB Palembang and Padang, 48.25 cents FOB
\nSurabaya, 47.75 cents FOB Jambi and 47.50 cents FOB Pontianak. In
\nMalaysia, dealers said the expected shortcovering should help
\nshore up prices this week.<\/p>\n
\"Domestic prices are considered cheap and consumers should be
\nlured into the market for sheet and latex grades,\" a dealer said.
\n\"We have the raw materials if they (buyers) need them.\"<\/p>\n
\"Overseas latex demand is seen slackening, but the market will
\nfind interest from local glove and condom manufacturers,\" another
\ndealer at a trading firm in Malaysia added.<\/p>\n
The Malaysian benchmark June RSS1 grade rubber was quoted at
\n285 Malaysian cents a kg at the close of the market last Friday
\nagainst the previous week's 278.50 cents, and June SMR 20 was
\nseen at 266 cents against 264 cents.<\/p>\n
\"We feel that RSS 1 could reach 300 cents this week,\" a
\nMalaysian trader said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/se-asian-rubber-prices-climb-up-on-better-demand-1447893297",
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