Asian rubber markets settled higher last week as the Japanese yen weakened against the dollar, crude oil futures climbed up, and Germany and France posted modest growth in the third quarter. Meanwhile, Reuters Newswires reported on Friday that the Chinese government will buy 60,000 tons of natural rubber from domestic markets by year end at 24,600 yuan ($3,900) per ton to support prices in its first stockpiling effort for the commodity since 2009.
IRCo’s DCP stayed at 286.52 US cents/kg on Friday, or 2.69 US cents/kg (0.95%) higher than its initial price at 283.83 US cents/kg on Monday. Similarly, Thai RSS-3 also rose to 299.38 US cent/kg on Friday from 295.83 US cents/kg on Monday, or gained 3.55 US cents/kg (1.20% higher). Meanwhile, Thailand STR-20 also rose a bit to 280.05 US cents/kg on Friday, or up 0.37 US cents/kg, or 0.13% higher than its settlement price at 279.68 US cents/kg on Monday.
In the meantime, Indonesia SIR20 settled 3.55 US cents/kg higher at 280.00 US cents/kg on Thursday, or gained 1.82% compared with its settlement price at 275.00 US cents/kg on Monday. Likewise, Malaysia SMR20 also rose to 289.00 US cents/kg on Thursday from 287.00 US cents/kg on Monday, or up 0.70%.
The benchmark rubber contract for April delivery on TOCOM settled 4.10 yen/kg higher at 248.40 yen/kg on Friday, or gained 1.68% compared with its settlement price at 244.30 yen/kg on Monday. In addition, Shanghai Futures Commodity Exchange for May delivery also closed higher at 24,215.00 Yuan/ton, or 420.00 Yuan/ton (1.77%) higher than its settlement price at 23,795.00 Yuan/ton on Monday. Moreover, AFET RSS-3 for May delivery rose slightly from 93.30 THB/kg on Monday to 93.75 THB/kg on Friday, or gained 0.45 THB/kg, or up 0.48%.
NR supply is expected to be tight in the coming weeks as main rubber production regions inIndonesia are entering the dry wintering season, while rubber main plantation areas in southernThailand and northern Malaysia are still in the rainy season.
Source: IRCo
