Asian rubber markets settled mostly higher last week amid a continued weakening Japanese yen against the US dollar. In addition, an increase in the Chinese export figure for December 2012 by 14.1 percent, or 9.1% compared with the export figure from a year earlier had also bolstered NR prices during the week. However, a report on a pick-up in Chinese inflation last December led to profit-taking on rubber future and physical rubber markets across Asia.
IRCo’s DCP stayed at 319.49 US cents/kg on Friday, or 2.26 US cents/kg (0.71%) higher compared with its initial price at 317.23 US cents/kg on Monday. Similarly, Thai RSS-3 also rose to 339.88 US cent/kg on Friday from 336.72 US cents/kg on Friday, or gained 3.16 US cents/kg (0.94 % higher). Meanwhile, Thailand STR-20 also rose to 312.81 US cents/kg on Friday, or up 3.00 US cents/kg, or 0.97% higher than its settlement price at 309.81 US cents/kg on Monday.
Likewise, Malaysia SMR20 also rose a bit to 315.00 US cents/kg on Friday from 312.00 US cents/kg on Monday, or up 0.96%. Moreover, Indonesia SIR20 also settled 3.00 US cents/kg higher at 304.00 US cents/kg on Friday, or gained 1.00% compared with its settlement price at 301.00 US cents/kg on Monday.
The benchmark rubber contract for June delivery on TOCOM settled at 312.20 yen/kg on Friday, 8.50 Yen/kg (2.80%) higher than its initial price at 303.70 yen/kg on Monday. On the other hand, the Shanghai Futures Commodity Exchange for May delivery closed lower at 26,160.00 Yuan/ton, or 85.00 Yuan/ton (0.32%) lower than its settlement price at 26,245.00 Yuan/ton on Monday. Likewise, AFET RSS-3 for August delivery also decreased slightly from 107.40 THB/kg on Monday to 105.80 THB/kg on Friday, or lost 1.60 THB/kg (1.49% lower).
NR supply is expected to remain tight in the coming weeks as main rubber production regions in Indonesia are disrupted by the rainy season. At the same time, rubber planted areas in southern Thailand and northern Malaysia are expected to start shedding their leaves late this month or early next month as the rain has stopped in the two regions of the two countries.
Source: IRco
