Asian rubber markets moved in a narrow range and settled mixed last week. Some factors were likely to influence market sentiment during the week, such as concerns over higher rubber inventories in Shanghai and concerns about persistently global economic instability that still weighed on market sentiment. However, a weakening Japanese yen against the dollar tended to support NR prices.
IRCo’s DCP ended the week at 290.57 US cents/kg on Friday, or 1.01 US cents/kg (0.35%) higher than its initial price at 289.56 US cents/kg on Monday. Similarly, Thailand STR-20 rose a bit to 281.83 US cents/kg on Friday, or up 0.38 US cents/kg, or 0.14% higher than its settlement price at 281.45 US cents/kg on Monday. On the other hand, Thai RSS-3 fell to 299.09 US cent/kg on Friday from 301.83 US cents/kg on Monday, or lost 2.74 US cents/kg (0.91% lower).
In the meantime, Indonesia SIR20 remained unchanged and settled at 283.00 US cents/kg. But, Malaysia SMR20 finished the week at 289.00 US cents/kg on Friday, or lost 1.00 US cents/kg (0.34% lower) compared with its settlement price at 290.00 US cents/kg on Monday.
The benchmark rubber contract for May delivery on TOCOM settled 0.70 yen/kg lower at 259.10 yen/kg on Friday, or a bit lost of 0.27% compared with its settlement price at 259.80 yen/kg on Monday. In addition, Shanghai Futures Commodity Exchange for May delivery also closed lower at 23,830.00 Yuan/ton, or 520.00 Yuan/ton (2.14%) lower than its settlement price at 24,350.00 Yuan/ton on Monday. On the contrary, AFET RSS-3 for July delivery rose from 95.80 THB/kg on Monday to 97.50 THB/kg on Friday, or gained 1.70 THB/kg, or up 1.77%.
NR supply is expected to be tight in the coming week as main rubber production regions inIndonesia are still in the dry wintering season, and the rainy season in main rubber plantation areas in southern Thailand and northern Malaysia are not over yet.
Source: IRCo
