* Thai RSS3 sold at $2.11-$2.12/kg
* Thai STR20 offered at $1.84/kg, below USS3 prices
* SIR20 traded at $1.76-$1.79; SMR20 at $1.85
By Lewa Pardomuan
SINGAPORE, April 30 (Reuters) – A few cargoes of tyre graderubber changed hands among trading houses this week, but somesellers shunned the physical market as prices hovered nearmulti-year lows despite recent gains, dealers said on Wednesday.
The dry wintering season in Thailand, Indonesia and Malaysiahas failed to help physical prices resist pressure frombenchmark Tokyo futures, which have plunged more than 20 percentthis year on fears about China’s slowing economy.
Rubber is tapped year round but latex output drops duringthe dry wintering season, when trees shed leaves. Wintering inThailand and Malaysia lasts from February to April. InIndonesia, wintering lasts from February to May before startingagain in July through September.
Thai RSS3 was traded late on Tuesday at $2.11 to $2.12 a kgfor June delivery, versus $2.05 last week. Another grade, STR20,was offered at $1.84 a kg, higher than last week’s traded pricesof $1.76, but about 16 cents lower than the price of unsmokedrubber sheet, which farmers sell to factories.
Indonesian and Malaysian grades were traded at between $1.76and $1.85 a kg, dealers said.
“The price of STR20 is still below cost,” said a dealer inThailand. “I didn’t hear any deals and I think buyers areprobably looking to buy when the wintering has ended, whichmeans more supply.”
On Singapore’s SICOM exchange, the TSR20 contract -which covers Thai, Indonesian and Malaysian grades – plunged toits weakest since mid-2009 last Monday at 160.20 U.S. cents akg. It has since risen to around 175 cents.
The most active October rubber contract on the TokyoCommodity Exchange was on course for an 11-percent dropin April.
Indonesia’s SIR20 was traded at $1.76 to $1.79 a kg forJune, higher than last week’s offer prices of $1.69 to $1.71cents.
“Many people are still refusing to sell. It’s very hard todo business when prices keep falling. Farmers are not willing totap rubber,” said a dealer in Indonesia’s main growing island ofSumatra.
There were no signs the International Rubber Consortium(IRCo), which represents rubber producers in Thailand, Indonesiaand Malaysia, will intervene to support prices.
The three Southeast Asian nations last acted jointly in 2012to 2013, agreeing to cut exports by 300,000 tonnes, or 3 percentof 2012 global output.
Malaysia’s SMR20 was traded at $1.85 a kg, versus $1.73 to$1.80 a kg last week.
“Rubber prices are so low, and I think in Malaysia tappersprefer to do other jobs at factories,” said a dealer inSingapore, who trades SMR20.
WEEK AHEAD
Traders will remain cautious next week as prices could fallback if selling resumes on Tokyo futures.
(Editing by Richard Pullin)
– Reuters
