Slow trade will subdue SE Asian rubber prices<\/p>\n
SINGAPORE (Reuter): Slack demand and abundant supplies will
\nkeep the Southeast Asian rubber market subdued this week,
\nregional traders said yesterday.<\/p>\n
The absence of major offtake from China and the seasonal
\nsummer slump as buyers in Europe and the United States go on
\nholiday will continue to depress prices, they said.<\/p>\n
\"The bears are ruling the roost because offtake from the major
\nbuyers remained non-existent. There's no news out there which may
\nbe able to lift prices,\" a Singapore-based rubber trader said.<\/p>\n
\"There's quite a lot of raw material around, enough to meet
\nnearby shipments to Japan,\" one Thai trader explained.<\/p>\n
Rains slightly affected tapping on the west coast in the
\nPhuket and Trang areas, but supplies remained plentiful, traders
\nsaid.<\/p>\n
Thai benchmark RSS-3 for October shipment eased slightly to
\nUS$1.25\/kg-$1.26\/kg FOB Bangkok on Friday, compared with around
\n$1.26\/kg last week, the traders said.<\/p>\n
\"Farmers and dealers are holding onto supplies. They think
\nprices are low enough and there's no incentive to sell,\" one
\ntrader said.<\/p>\n
Some Chinese buyers were in the market, but the extent of
\ntheir purchases was not clear, they said.<\/p>\n
\"I've head the Chinese are asking for rubber but I didn't hear
\nof any trading,\" one trader said.<\/p>\n
\"The Chinese seem to be quite active if they get the right
\nprice, but it's difficult to say just how much they're buying,\"
\nanother trader said.<\/p>\n
Malaysian traders said they felt the presence of the Chinese
\nremained minimal since they appear to have ample stocks after
\nrecent shortcovering.<\/p>\n
Traders said prices were likely to remain under pressure in
\nthe absence of keen consumer interest and ample stocks of raw
\nmaterials in the market.<\/p>\n
The benchmark RSS-1 closed on Friday at 323.5 Malaysian cents
\na kg while the SMR20 ended at 302 cents a kg.<\/p>\n
Dealers said they expect RSS1 to trade in the 322-323 cent
\nrange and the SMR20 at 301-302 cents.<\/p>\n
The Malaysian Metereological Services Department said it
\nexpected a rainy week after more than a fortnight of fine
\nweather.<\/p>\n
\"The rain could cut production and stocks a bit, but I don't
\nthink (it will be) enough to help trigger a rebound,\" said a
\ndealer. \"Certainly, I don't see buyers becoming active again.\"<\/p>\n
In Indonesia, SIR20 prices are seen generally stable this week
\namid signs of likely lower supply in some rubber producing
\nregions, dealers said.<\/p>\n
\"Demand is likely to stay weak but I think the worst is over
\nnow,\" one dealer in Jakarta said.<\/p>\n
\"The weak demand is unlikely to push prices much lower as
\nprices have already reached bottom and there are signs of lower
\nsupply in some key rubber regions,\" another dealer in the North
\nSumatra capital city of Medan said.<\/p>\n
Dealers said SIR20 offer prices for October deliveries will
\nstay in a range between 54.75-55.25 U.S. cents\/lb FOB Medan,
\n54.00-54.50 cents FOB Palembang, Surabaya and Padang, and at
\n53.50-54.00 cents FOB Jambi and Pontianak.<\/p>\n
One latex dealer in Medan said he had signed deals to sell all
\nhis August deliveries latex to local firms as selling it in the
\ndomestic market was more profitable than exporting it.<\/p>\n
\"There is talk of some local firms preferring to buy latex
\nfrom Thailand, but the buying is likely to have little impact on
\nthe local market as many still prefer to buy locally,\" the latex
\ndealer said.<\/p>\n
High ammoniac grade latex, with 60 percent dry rubber content,
\nwas seen generally on offer at Rp 2,450\/kg in Medan and Rp 2,425
\nin the western Javanese towns of Bandung and Tangerang, dealers
\nsaid.<\/p>\n
Bulk latex in Malaysia eased to 90-92 U.S. cents\/pound from 93
\nU.S. cents\/pound last week on good supplies, a trader there said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/slow-trade-will-subdue-se-asian-rubber-prices-1447893297",
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