S'pore rubber futures prices firm

S'pore rubber futures prices firm

SINGAPORE (Agencies): Singapore rubber futures prices ended firmer yesterday on European and local buying interest in tandem with the Japanese market, dealers said.

Trading was moderate, with turnover dropping to 9,070 tons from 13,390 tons the previous day, while prices of the three grades traded rose one to two cents, a dealer said.

January-March RSS 1 last traded at 206.5 Singapore cents, November RSS 3 at 146.5 US cents and November TSR 20 at 195 Singapore cents.

In Kuala Lumpur, rubber prices rose further on shortcovering by European and U.S. tyre makers due to tight supply, arising from the wet weather, traders said.

Consumers are seen covering their positions due to shortages of raw materials in many producing countries. "There is an acute shortage and we don't see much stocks in Malaysia, Thailand and Indonesia."

"The Europeans and U.S. tyre makers are in Malaysia covering for SMR 20 for nearby shipment for fear they can't get stocks because of the current low supplies."

Dealers were unable to disclose further details.

"The weather is the market factor and output in coming months is likely to drop," a dealer said, estimating falls of up to 40 percent in October production.

Buying from China has slowed down as prices have gone too high, traders said. The Chinese buyers have been in the market, buying SMR 20 and some sheet rubber in recent days. Dealers were unable to provide further details as China's deals are mostly direct.

Nov RSS Ones buyer rose two cents to 365.50 cents ($1.44) a kg and Nov SMR20 buyer was up 3.50 cents at 345.50.