Traders upbeat on Thai, Sumatran rubber prices<\/p>\n
SINGAPORE (Reuter): Southeast Asian traders said Thai and
\nIndonesian rubber prices appeared firm on an upward track and may
\nclimb higher this week on supply worries, although Malaysian
\nprices could dip slightly on a technical correction.<\/p>\n
Thai traders said raw material supply was improving as recent
\nheavy rains began to peter out, but exporters scrambling to fill
\norders and local processors were competing for supplies.<\/p>\n
But rains have returned to Indonesia's main rubber areas on
\nSumatra island, where trader said reduced tapping is expected to
\nkeep raw material supplies tight.<\/p>\n
One senior dealer in Singapore said Sumatran production could
\nplunge by between 20 and 50 percent. Production from Sumatra's
\nJambi alone could dip by as much as 50 percent as smallholders
\ntake a break from tapping to harvest rice crops, he added.<\/p>\n
But he said the dry speel in Kalimantan, the Indonesian
\nprovince on Borneo Island, has threatened to cut latex production
\nby 15 percent.<\/p>\n
Based on weather and other factors, traders in Singapore said
\nthe general market outlook could remain firm. "It looks quite
\nsteady ... the general consensus is there may be a small
\n(downward) reaction before going forward again," said one.<\/p>\n
Thai benchmark RSS3 firmed to around 150-151 U.S. cents a kg
\nfor December-March shipment last week compared with around 141-
\n142 U.S. cents a week earlier, Thai traders said.<\/p>\n
Japanese dealers and users were the main buyers last week and
\nthey also began to buy TTR20 for the first time in several months
\nas prices in Indonesia, the main producer of tire grade, firmed
\nto match Thai prices, a trader said.<\/p>\n
"The Japanese have returned to buy TTR 20," he added. "TTR20
\nhas been quiet for around three months but now the price of
\nIndonesia's SIR20 has climbed to meet it." He said TTR20 was now
\ntrading at around 140 cents while SIR20 was at around 139 cents.<\/p>\n
In Indonesia, traders said SIR20 was traded around 62.00-64.00
\nU.S. cents a pound for most of the week in Medan and Palembang,
\nand prices were likely to remain steady this week.<\/p>\n
Kuala Lumpur traders said Malaysian rubber prices could ease
\nslightly in a technical reaction to recent sharp gains. But they
\nadded that prices could rebound higher because of prevailing wet
\nweather and speculation of fresh Chinese buying.<\/p>\n
One dealer estimated that China bought more than 20,000 tons
\nof Malaysian, Indonesian and Thai rubber for prompt shipment two
\nweeks ago.<\/p>\n
"But nobody knows what China is up to and how much it still
\nneeds to buy for 1995," a Singapore trader said.<\/p>\n
Meanwhile, key rubber producing nations meet in Singapore this
\nweek to discuss the future of a global price-stabilization accord
\nand formulate ways to promote the industry but no major decisions
\nare expected, delegates said.<\/p>\n
The annual assembly of the seven-member Association of Natural
\nRubber Producing Countries (ANRPC) from November 1-2 will discuss
\nfuture rubber supply\/demand and price direction but is unlikely
\nto consider any market measures.<\/p>\n
The Singapore meeting is expected to be attended by senior
\ngovernment and industry officials from Indonesia, India,
\nMalaysia, Papua New Guinea, Singapore, Sri Lanka and Thailand.<\/p>\n
High on the agenda is the fate of a new International Natural
\nRubber Agreement (INRA) to replace an existing pact which expires
\non De.28 this year.<\/p>\n
The agreement can only be succeeded by a new one if 75 percent
\nof world exporters and importers sign and ratify the pact which
\nthey hammered out in February in Geneva.<\/p>\n
"No producers and consumers have decided whether to sign and
\nratify before the December 28 deadline," said A.F.S. Budiman, the
\nexecutive director of the Indonesian Rubber Association.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/traders-upbeat-on-thai-sumatran-rubber-prices-1447893297",
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"sponsor": "Okusi Associates",
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