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.