* RSS3 traded at $2.31/kg FOB, STR20 $2.18-$2.00 CIF
* SIR20 sold at 90.00-90.50 cents/lb FOB
* SMR20 done at $2.05-$2.08 a kg FOB
By Lewa Pardomuan
SINGAPORE, March 14 (Reuters) – Top rubber consumer Chinaand major tyre makers bought several cargoes for nearby shipmentthis week, but the physical market remained under pressure fromhigh inventory and concerns about economic growth, dealers saidon Friday.
The closely-watched stocks in China’s bonded warehouses inthe port of Qingdao currently stand around 343,000 tonnes,according to dealers’ estimates, up from around 290,000 tonnesin January.
Thai RSS3 grade changed hands overnight at $2.31 a kg forApril/May delivery without freight, up from $2.18 last week.Another Thai grade, STR20, was traded at $1.98 to $2.0 a kgincluding freight to China, up from $1.93 offered last week.
“It’s hard to say where the market is heading. Some peopledo buy on dips and sell on rallies,” said a dealer in Thailand,the world’s largest producer. “The STR20 grade has been tradedin China, and the offer prices at the origin should be higher.”
Tyre grade prices in Thailand, Indonesia and Malaysiatracked benchmark Tokyo Commodity Exchange (TOCOM) higher, butthe current gains driven by bargain hunting could be capped bypersistent worries about the Chinese economy.
Chinese Premier Li Keqiang warned on Thursday that theeconomy faces “severe challenges” in 2014 – comments that cameas weak data fanned speculation the central bank would relaxmonetary policy to support stuttering growth.
The most active rubber futures on TOCOM set the tonefor tyre-grade prices in Southeast Asia but the contract isoften influenced by macroeconomics, currencies, equities andpolitics.
Physical rubber contracts on the Singapore CommodityExchange are still within sight of their weakest levelin five years.
Indonesia’s SIR20 rubber for May/June delivery was sold toBridgestone Corp and trading houses at 90.00 to 90.50U.S. cents a pound FOB ($1.98 to $1.99 a kg), higher than 85.00to 85.25 cents last week.
Malaysia’s SMR20 was traded at $2.05 to $2.08 a kg FOB, upfrom $1.98 to $1.99 a kg last week.
WEEK AHEAD
Movements in Tokyo rubber futures will influence tyre-gradeprices next week, with dealers expecting tight supply to offermuch-needed support.
The dry wintering season, causing leaves to fall and curbingthe flow of latex, is underway in Thailand, Indonesia andMalaysia, which account for about 70 percent of global naturalrubber output. (Editing by Sunil Nair)
Reuters
