SE Asian rubber prices seen steady to easier<\/p>\n
SINGAPORE (Reuter): Southeast Asian rubber prices are seen
\nsteady to easier this week with the trade shrugging off news the
\nInternational Natural Rubber Organization (INRO) is ready to
\nintervene in the market, dealers said yesterday.<\/p>\n
\"We expect prices to stay the same this week because the
\nmarket lacks fresh factors which can change the price trend,
\neither upward or downward,\" a dealer in Indonesia said.<\/p>\n
\"We may still see more covering from Europe before the summer
\nholidays and by local dealers,\" a dealer in Malaysia said, adding
\nhe expected some Far East enquiries on latex SMR grades for July
\nand some forward shipments of rubber.<\/p>\n
But dealers in Singapore and Thailand, the world's biggest
\nproducer of rubber, were not so optimistic and forecast that
\nprices will probably slide this week.<\/p>\n
\"You've got to be a bit bearish. We're coming into the summer
\nslowdown season. It's difficult to see a price increase before
\nSeptember or October,\" a senior trader for a commodity house in
\nSingapore said.<\/p>\n
News that INRO is ready to intervene in the market caused
\nbarely a ripple in the trade although Thai government officials
\nwelcomed the development because the move would help reduce
\npressure for Bangkok to support local producers.<\/p>\n
\"It is a good news even though there is no immediate impact
\nright now,\" a senior Thai official said.<\/p>\n
Thailand has been supporting rubber prices in the country and
\nwill spend one billion baht in its rubber intervention plan.<\/p>\n
Rubber industry officials and dealers around the region were
\nnot overly excited about the INRO announcement.<\/p>\n
\"I wouldn't be too excited, at least not now. Even though the
\nmarket is very bearish, we are still about US$200 per ton away
\nfrom the intervention level,\" said a Bangkok-based trader.<\/p>\n
\"We used to be happy with such news. But the fact is that
\nIndonesia produces tens of thousands of tons of rubber each
\nmonth. We are always in doubt about how much rubber INRO can buy
\nfrom us,\" a dealer in Indonesia said.<\/p>\n
\"We believe that INRO can only purchase at most 100 tons. It's
\nso small,\" he added.<\/p>\n
A dealer at a Malaysian plantation firm said INRO will not
\nintervene immediately in the market.<\/p>\n
\"INRO cannot intervene now yet. INRO's five-day moving average
\nprice is still far way from INRO's \"may-buy\" or \"must-buy\"
\nlevels,\" a dealer at a plantation firm said.<\/p>\n
\"The market is bearish now and if prices continue to fall
\ngradually to near his (INRO's buffer stock manager) levels, we
\nwill see what (will) happen then,\" he said.<\/p>\n
Malaysian traders said their attention was also focused on
\ntight supply in the local market with tappers increasingly
\nlooking elsewhere for work due to low rubber prices.<\/p>\n
\"They think the daily wage they obtain through tapping is not
\nenough to support their lives,\" said one trader.<\/p>\n
Rubber trading houses in Malaysia were also hoarding stocks in
\nthe hope that prices will begin firming up.<\/p>\n
\"Some London dealers are trying to buy forwards right until
\nDecember but producers are not willing to sell at current low
\nlevels on expectation of higher prices in the later part of the
\nyear,\" a dealer in Malaysia said.<\/p>\n
Trading activity around the region was thin, dealers said.<\/p>\n
In Indonesia, traders said a deal was recently done at 46.50
\nU.S. cents\/lb FOB Palembang for August shipment and at 47.25
\ncents FOB Medan. Offer prices were quoted at 46.50 cents FOB
\nPadang and Surabaya and at 46.50 cents FOB Pontianak and Jambi.<\/p>\n
Malaysia's benchmark July RSS1 buyer was seen at 282.50
\nMalaysian cents a kg at the close of the market last Friday
\nagainst 284 cents the previous week and July SMR 20 buyer was at
\n258.50 cents against 263 cents.<\/p>\n
The Thai benchmark RSS3 for August delivery was quoted at
\naround 112.00 U.S. cents per kg FOB Bangkok against last week's
\n116.00 cents.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/se-asian-rubber-prices-seen-steady-to-easier-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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