* SIR20 sold at 137-138.50 cents/lb for Feb/March
* STR20 offered at $3.35, STR20 at $3.13/kg; no deals
* Tokyo rubber futures resume trading on Friday
By Lewa Pardomuan
SINGAPORE, Jan 3 (Reuters) – A few cargoes of Indonesian tyre grade were sold to buyers from the United States and Singapore this week, but recent gains in rubber prices muted demand from other consumers, dealers said on Thursday.
Thai and Malaysian grades were also offered in the physical market overnight, but they failed to attract buyers. Rubber has risen as much as 8 percent in the last two weeks, tracking rallies on the Tokyo Commodity Exchange (TOCOM).
Indonesia’s SIR20 rubber, normally the cheapest grade in Southeast Asia, was traded late on Wednesday at 137.00 to 138.50 U.S. cents a pound ($3.02 to $3.05 a kg) for February and March, up from 131 to 131.25 cents two weeks ago.
“There were several deals last night, and it’s good to see the market is moving,” said a dealer in Indonesia’s main growing island of Sumatra. “TOCOM has gone up so much, but I don’t think there’s news about China’s demand yet.”
Tokyo rubber futures ended 2012 with a 15 percent gain on a weaker yen, higher stock markets and speculation over buying by China early next year.
The most active contract on TOCOM for June delivery rose 1.8 yen or 0.6 percent at 302.5 yen per kg on December 28 after earlier rising to 304 yen, the highest for any benchmark since May 8. Trading resumes on January 4.
China, the world’s main rubber consumer, imported 1.97 million tonnes of rubber in January to November 2012, up 3.67 from the same period in the previous year.
Thai RSS3, the benchmark grade in Southeast Asia, was offered at $3.35 a kg, up from $3.10 two weeks ago. Another Thai grade, STR20, was offered at $3.12 to $3.13 a kg, higher than $2.90 in late December.
“I don’t hear anything about China. It’s been extremely quiet in the last couple of days. Both buyers and sellers are cautious following a surge in prices,” said a dealer in southern Thailand.
“Supply is not much of an issue here. But there are certain locations or spots which have been hit by heavy rains.”
Malaysia’s SMR20 was offered at $3.15 a kg but some sellers refused to sell it because bids were much lower at $3.12. The grade stood at $2.85 in late December.
WEEK AHEAD
Physical prices could rise again next week if Tokyo futures extend gains on a weaker yen and after equities rally on a last-minute deal in Washington to prevent the U.S. economy from plunging into recession.
The Tokyo market typically sets the tone for physical prices, but futures contracts are often influenced by macroeconomics.
(Editing by Miral Fahmy)
Source: Reuters
