KL rubber prices fall on competition

KL rubber prices fall on competition

KUALA LUMPUR (Reuter): Malaysian rubber prices fell at the close as market adjusted to competition from Indonesia, traders said.

At the close, the Malaysian Rubber Exchange and Licensing Board quoted April RSS1 buyer at 296.50 cents ($1.20) a kg, down one cent from Tuesday. April SMR20 buyer was also a cent lower at 283.50.

Traders quoted the SMR 20 at 284/285 cents a kg, SMR CV at 351, SMR L at 331, SMR 10 at 286 and drum latex FOB at 235.

Traders noted some short-covering but said prices were down because producers were adjusting to competition from Indonesia.

"Our rubber is still expensive if compared to Indonesia," said a trader.

Business for the day included 500 tons of SMR20 for Iran at 282 cents a kg for end April delivery and 350 tons of latex for Korea at 218 cents a kg for end April/early May delivery.

The INRO five-day moving indicator was quoted at 228.01 Malaysian/Singaporean cents per kg on April 1, down from the 228.34 on March 31. The daily indicator was also lower at 227.20 cents against 227.96 previously.