Rubber recovers in S'pore

Rubber recovers in S'pore

SINGAPORE (Reuters): Rubber traders used the relative calm seen in Southeast Asia's financial markets yesterday to engage in some light shortcovering while likewise keeping a wary eye on the situation in Indonesia, dealers said.

"There was some routine buying by Michelin and there were also some brokers doing some buying for RSS1 rubber. But it's still a pretty nervous market with many people looking at what happens in Indonesia," a dealer said.

Traders said the market was very wary that the currency turmoil which has battered the region and caused rubber prices to weaken will flare up anew.

"Oh yes, we're watching Indonesia. There's also nothing really major going on in the market at the moment," a dealer said, adding there were some very low bids from one major tyre manufacturer which were promptly ignored by the trade.

Traders said there was also some covering and forward buying seen in TSR20 rubber which gave prices a mild boost.

At around 0945 GMT, February RSS3 was seen at 59.50 U.S. cents a kg from the previous 59.00 cents. March TSR20 was seen at 70.75 cents against 69.75 cents.