Indonesian rubber stable, Singapore mart buoyed

Indonesian rubber stable, Singapore mart buoyed

SINGAPORE (Reuter): The Singapore rubber trade finished on an upbeat note yesterday on the back of modest shortcovering by local brokers and a few consumers in the market, dealers said.

"There was a bit of fairly extensive shortcovering by local brokers in the market. Most of the overseas buys were not in but the buying was across the board and steady," a dealer said.

"Bridgestone was said to have asked for some quotes today. I believe they bought some TSR20 rubber for forward delivery," another dealer said.

Traders said the market may become quiet again on Friday ahead of an industry meeting in Indonesia. Lingering concerns over the region's currency problems may also drive market players to the sidelines.

"Most of the people have left for Indonesia. With the end of the week coming up, it should be quiet," one trader said.

At 0945 GMT, October RSS3 was seen at 97.50 U.S. cents a kg from 98.50 cents. January/March RSS1 was seen at 154.75 Singapore cents (US$1.05 cents) a kg from 156.00 cents. October TSR20 was seen at 99.75 U.S. cents a kg from 100.75 cents.

In Jakarta, tyre-grade SIR20 rubber prices were stable in late trading yesterday, with sentiment upbeat on improved buying interest.

They said October shipment SIR20 was done 44.00 cents/lb fob Medan and 43.75 cents fob Surabaya.

"Singapore dealers were actively seeking rubber," one trader said. "They asked me for October shipments but I declined, so they bought elsewhere."

Traders said sentiment was improving after weeks of sustained poor buying interest and weak prices, adding that they were hopeful of values strengthening, albeit gradually.

They said that September SIR20 offers were quoted at 44.00 cents/lb fob Medan, 43.75-43.875 cents fob Palembang and Surabaya, 43.50 cents fob Padang and 43.25 cents fob Pontianak and Jambi.