Holidays keeps rubber trade quiet

Holidays keeps rubber trade quiet

SINGAPORE (Reuters): The Southeast Asian rubber market will be quiet this week because of the Lunar New Year and Moslem Eid al- Fitr holidays in several key rubber-producing countries, dealers said on Monday.

"It is safe to say the market will be quieter this week because of the Chinese New Year and the Eid al-Fitr celebrations," a dealer in Indonesia said.

"Most of the producers, consumers and dealers will be off. It'll be almost dead," a rubber trader for a Singapore-based commodity house said.

Markets in Malaysia and Singapore will be closed on January 28 and 29 for Lunar New Year. The two countries, along with Indonesia, will be closed on Jan 30 for Eid al-Fitr, which marks the end of the holy Moslem fasting month of Ramadhan.

"The market will surely be quiet this week. There will be Chinese New Year and the Eid al-Fitr. All the Chinese bosses will be busy preparing for the New Year while the employees' minds are set on Eid," a trader in Indonesia added.

"People will be keeping an eye on the still shaky situation in Indonesia, but I doubt if anybody will be around this week," said the general manager of a rubber trading house in Singapore.

Dealers around the region said prices climbed last week as buyers like Goodyear and Bridgestone engaged in shortcovering ahead of the holidays and due to their concerns over tight supplies in the main rubber producing countries.

Traders in Indonesia said tire-grade SIR20 rubber was sold at 38.00 U.S. cents/lb for March shipment FOB Medan.

In Thailand, the benchmark RSS3 rubber for June shipment was quoted at 76 U.S. cents a kg FOB Bangkok while July/August shipments were seen at 77 cents, traders said.

The Malaysian Rubber Board quoted February RSS1 buyer at 326.50 Malaysian cents a kg at the close of trade last week, a hefty 42 cents up from the level the previous week.