Asian rubber markets settled lower last week amid a volatile yen, concerns over Eurozone’s economic outlook, and the absence of most of Chinese traders in rubber markets due to a week-long Lunar New Year holiday in China.
IRCo’s DCP fell 4.34 US cents/kg, or down 1.36%, to 315.37 US cents/kg on Friday from 319.71 US cents/kg on Wednesday as rubber markets in Indonesia, Malaysia and Singaporewere closed from Monday to Tuesday. Thai RSS-3 slipped 0.33 US cents/kg, or down 0.10%, to 327.08 US cent/kg on Friday from 327.41 US cents/kg on Monday. Thailand STR-20 also dropped 1.46 US cents/kg, or down 0.47%, to settle at 306.49 US cents/kg on Friday from 307.95 US cents/kg on Monday. In the meantime, Malaysia SMR20 and Indonesia SIR20 had shown losses during the week. Indonesia SIR20 fell 5.00 US cents/kg, or down 1.61%, to 306.00 US cents/kg on Friday from 311.00 US cents/kg on Wednesday. Similarly, Malaysia SMR 20 also ended the week 3.00 US cents/kg, or down 0.94%, at 316.00 US cents/kg on Friday compared with its settlement price at 319.00 US cents/kg on Wednesday.
The benchmark rubber contract for July delivery on TOCOM settled 10.20 yen/kg lower, or down 3.08%, at 321.60 yen/kg on Friday compared with its settlement price at 331.60 yen/kg on Monday. AFET RSS-3 for September delivery slipped 0.50 Baht/kg, or down 0.49%, to 101.25 THB/kg on Friday from its settlement price at 101.75 THB/kg on Monday. In addition, the Shanghai Futures Commodity Exchange was closed due to the week-long public holiday.
NR supply is expected to remain tight in the coming week as main rubber production regions inIndonesia are disrupted by the rainy season, whereas most parts of rubber planting areas in southern Thailand and northern Malaysia are experiencing the dry wintering season.
Source: IRCo
