Most Asian rubber markets stayed lower during the week than an earlier week due mainly to persistently weak rubber market sentiment. In contrast, rubber futures on Tokyo Commodity Exchange (TOCOM) stayed higher on the back of the weaker Japanese yen against the dollar.
For the week, TOCOM settled a bit higher on Friday compared with an earlier Friday as the Japanese yen continued weakening against the dollar as mentioned earlier, and China’s economy was picking-up from its weakest period of growth in three years which was shown by an increasing PMI and more investment from the world’s largest tire and rubber company, Bridgestone Corporation in China. Meanwhile, the firmness in oil prices also supported rubber prices.
IRCo’s DCP stayed at 298.81 US cents/kg on Thursday, or 3. 55 US cents/kg (1.20%) higher than its initial price at 295.26 US cents/kg on Monday (the Singapore, Malaysia and Indonesia markets closed on Friday 2012 due to the Iedul Adha Holiday). Similarly, Thai STR-20 also rose to 294.31 US cent/kg on Friday from 292.59 US cents/kg on Monday, or gained 1.72 US cents/kg (0.59 % higher). On the contrary, Thailand RSS-3 fell a bit to 310.41 US cents/kg on Friday, or down 0.97 US cents/kg, or 0.31% lower than its settlement price at 311.28 US cents/kg on Monday.
In the meantime, Malaysia SMR20 settled 4.00 US cents/kg higher at 301.00 US cents/kg on Thursday, or gained 1.35% compared with its settlement price at 297.00 US cents/kg on Monday. Likewise, Indonesia SIR20 also rose to 292.00 US cents/kg on Thursday from 286.00 US cents/kg on Monday, or up 2.10%.
The benchmark rubber contract for April delivery on TOCOM settled 5.10 yen/kg higher at 259.50 yen/kg on Friday, or gained 2.00% compared with its settlement price at 254.40 yen/kg on Monday. Furthermore, AFET RSS-3 for May delivery also rose from 98.15 THB/kg on Monday to 98.40 THB/kg on Friday, or gained 0.25 THB/kg, or up 0.25%. On the contrary, Shanghai Futures Commodity Exchange closed a bit lower at 24,645.00 Yuan/ton, or 55.00 Yuan/ton (0.22%) lower than its settlement price at 24,700.00 Yuan/ton on Monday.
NR supply is expected to be tight in the coming week as main rubber production regions in Indonesia are entering the dry wintering season, while Thailand and Malaysia are still in the rainy season.
Source: IRCo
