* SIR20 sold to Bridgestone at $1.68 to $1.695/kg
* SMR20 traded at $1.77/kg, Thai grades untraded
By Lewa Pardomuan
SINGAPORE, June 12 (Reuters) – Indonesian rubber was sold toBridgestone Corp for August delivery this week, a fewcargoes of Malaysian tyre grade changed hands among tradinghouses, but consumers were waiting for prices in Thailand toslip, dealers said on Thursday.
Global oversupply and concerns about economic growth in topconsumer China have sent rubber prices to multi-year lows thisyear and hurt millions of farmers in Southeast Asia.
Benchmark Tokyo rubber futures have fallen about 27percent so far this year, sending physical prices in Singapore’sSICOM to their lowest level in nearly five years. TheTSR20 contract on SICOM covers Thai, Indonesian and Malaysiangrades.
Indonesia’s SIR20 was sold to top tyre maker Bridgestone at$1.68 to $1.695 a kg without freight for August delivery in aseries of overnight deals, higher than $1.66 to $1.675 lastweek, due to recent rebound in Tokyo futures.
Malaysia’s SMR20 was traded at $1.77 a kg, versus lastweek’s offer prices at $1.67 to $1.70 a kg. Some cargoes weresold to China at $1.70 without freight, dealers said.
Dealers could not confirm deals for Thai RSS3 and STR20grades.
“We didn’t hear anything unfortunately. It’s very strangebut I think the Thai dealers are still holding on to theprices,” said a dealer in Kuala Lumpur.
“The range for SMR20 is quite wide. There are some cargoesbound for China, although I think they have been bought bydealers in Singapore who need to cover shorts.”
Inventories in warehouses monitored by the Shanghai FuturesExchange have slipped to their lowest since November at about154,000 tonnes, but stocks in the bonded warehouses in Qingdaoremain high and are estimated by dealers at more than 300,000tonnes.
RSS3 was quoted at $2.02 to $2.03 a kg for August delivery,little changed from last week’s levels. STR20 was offered at$1.74 to $1.75 a kg, higher than $1.70 last week, but much lowerthan the production cost of about $1.80.
In mid-June last year, STR20 was traded at above $2 a kg.
“The offer price is definitely below production cost, butstill buyers are not willing to pay,” said a dealer in Thailand.
The tyre-making industry makes up about 60 percent of globalrubber consumption. Rubber is also used to make gloves, condomsand products used in industries such as transport, construction,health and mining.
WEEK AHEAD
Tyre grade prices could fall again if Tokyo rubber futuresresume the downtrend. (Editing by Anand Basu)
– Reuters
