Asian rubber markets settled mixed last week amid a strengthening in the Japanese yen against the dollar early in the week and an increase in rubber inventories in Shanghai Future Exchange. At the end of the week, a better-than-expected US earning report as well as a weakening in the Japanese yen against the dollar provided support for NR prices in the region.
IRCo’s DCP as well as spot prices of NR weakened and moved toward a downward trend from Monday to Thursday, and then the DCP and NR prices rebounded on Friday, but they still stayed lower than their initial prices on Monday. The DCP stayed at 318.16 US cents/kg on Friday, or 0.64 US cents/kg (0.20%) lower than its initial price at 318.80 US cents/kg on Monday. Similarly, Thai RSS-3 also slipped to 332.16 US cent/kg on Friday from 336.47 US cents/kg on Monday, or lost 4.31 US cents/kg (1.28% lower). Meanwhile, Thailand STR-20 also dropped to 306.31 US cents/kg on Friday, or down 4.75 US cents/kg, or 1.53% from its settlement price at 311.06 US cents/kg on Monday. In the mean time, Malaysia SMR20 and Indonesia SIR20 remained unchanged and settled at 315.00 US cents/kg and 306.00 US cents/kg respectively on Friday.
The benchmark rubber contract for June delivery on TOCOM settled at 316.30 yen/kg on Friday, 4.20 US cents/kg or 1.35% higher than its initial prices at 312.10 yen/kg. In addition, the Shanghai Futures Commodity Exchange for May delivery also closed higher at 25,870.00 Yuan/ton, or 65.00 Yuan/ton (0.25%) higher than its settlement price at 25,805.00 Yuan/ton on Monday. Furthermore, AFET RSS-3 for August delivery rose to 106.85 THB/kg on Friday, or gained 0.65 THB/kg (0.61% higher) compared with its initial price at 106.20 THB/kg on Monday.
NR supply is expected to remain tight in the coming week as main rubber production regions inIndonesia are disrupted by the rainy season (please recheck) whereas the rain has stopped in most parts of rubber planting areas in southern Thailand and northern Malaysia.
Source: IRCo
