Southeast Asian rubber prices firm, may ease
Southeast Asian rubber prices firm, may ease
SINGAPORE (Reuter): Torrential rains and tight supplies are
expected to keep rubber prices strong in Malaysia and Thailand
this week, but prices are seen easing if the weather improves,
regional traders said yesterday.
Indonesian rubber prices are likely to be stable on the back
of rising foreign inquiries and adequate supplies, they said.
"Supply is a bit tight and this could help prices this week,"
a Malaysian rubber trader said.
"Prices continued firm last week, especially for RSS-3 because
of short supplies. Rain affected tapping and supplies stayed
tight," a Thai rubber trader added.
But slack demand in China and the United States and reports
that rains had eased over rubber plantations in southern Thailand
and northern Malaysia should help cool off prices, Singapore-
based dealers said.
"Prices should start easing soon if the weather holds up," a
dealer in a European commodity house said. "Production is also
improving and that should help."
Thai benchmark RSS-3 was steady, being offered around US$1.53-
$1.54 FOB Bangkok for July/August shipment, similar to last
week's price levels.
In Malaysia, prices could perk up especially if recent heavy
rains return and restrict tapping activity, dealers said.
SMR CV was quoted at between 423-425 Malaysian cents per kg
with SMR L at between 400-402 cents at the close of trading on
Thursday ahead of the long holiday weekend in Malaysia.
The Malaysian Rubber Exchange and Licensing Board quoted June
SMR CV at 422.50 cents and SME L at 400.50 on Thursday.
Indonesian rubber prices are likely to stay stable in the
coming week amidst expectations of rising foreign inquiries and
relatively adequate supply, dealers said.
"We are likely to see more Chinese inquiries this week
following some bids in Medan late on Thursday, but they are
unlikely to come in a big way," one dealer in Jakarta said.
Dealers said more inquiries were also likely to come from the
United States on news of high rubber prices in Thailand, but they
were unlikely to buy in large quantities.
They said SIR20 offer prices were seen ranging between 58.50-
59.50 U.S. cents/lb in the north Sumatran city of Medan, 57.50-
58.50 cents in Padang, Jambi and Palembang and 57.25-58.25 cents
in Pontianak for July/August deliveries.
The traders added that supply was expected to be adequate in
the coming week, with some regions such as north Sumatra seen
producing more due to end of the wintering period and other
regions seen having lower production due to heavy rainfall.
Latex dealers said prices of high amoniac grade latex, with 60
percent dry rubber content, were also seen stable at between Rp
2,450/kg-Rp 2,500/kg in Jakarta and Bandung.