Asian rubber markets settled higher last week as the Japanese yen continued to weaken against the dollar. In addition, China showed an increase in its PMI in the fourth quarter of 2012. These factors were likely to bolster market sentiment during the week and lifted NR prices up further. In the mean time, strong demand in the fresh market tended to support NR prices as well.
IRCo’s DCP stayed higher at 312.26 US cents/kg on Friday or 10.86 US cents/kg (3.60%) higher than its initial price at 301.40 US cents/kg on Monday. Similarly, Thai RSS-3 also rose to 324.14 US cent/kg on Friday from 315.17 US cents/kg Monday, or gained 8.97 US cents/kg (2.85% higher). Meanwhile, Thailand STR-20 also rose to 300.65 US cents/kg on Friday, or up 8.48 US cents/kg, or 2.90% higher than its settlement price at 292.17 US cents/kg on Monday.
Moreover, Indonesia SIR20 also settled higher at 299.00 US cents/kg, or gained 9.00 US cents/kg compared with its initial price at 290.00 US cents/kg on Monday. Furthermore, Malaysia SMR20 also finished the week higher at 305.00 US cents/kg on Friday, or gained 8.00 US cents/kg (2.69% higher) compared with its settlement price at 297.00 US cents/kg on Monday.
The benchmark rubber contract for June delivery on TOCOM settled 14.90 yen/kg higher at 302.50 yen/kg on Friday, or increased significantly by 5.18%, compared with its settlement price at 287.60 yen/kg on Monday. In addition, Shanghai Futures Commodity Exchange for May delivery also closed higher at 26,005.00 Yuan/ton or 965.00 Yuan/ton (3.85%) higher than its settlement price at 25,040.00 Yuan/ton on Monday. Likewise, AFET RSS-3 for July delivery also rose significantly from 102.45 THB/kg on Monday to 108.80 THB/kg on Friday, or gained 6.35 THB/kg, or up 6.20%.
NR supply is expected to be tight in the coming week as main rubber production regions inIndonesia are disrupted by the rainy season as well as main rubber plantation areas in southernThailand and northern Malaysia.
Source: IRCo
