Asian Rubber Futures Settle Higher As Producers Seek To Improve Prices
7 October 2014, 17:52 SEAST
Asian rubber settled higher Tuesday as prices received support from news of discussions between major producing countries about the depressed market.
The International Rubber Consortium said on its website that a ministerial meeting between Thailand and Malaysia on Monday emphasized concerted action and measures to improve rubber prices to “a fair level” as the current price is below the cost of production.
Benchmark natural rubber on the Tokyo Commodity Exchange settled 1.7% higher at Y179.4 a kilogram as producers were considering joint action to stop an extended price decline. Singapore-based Rabobank analyst Pawan Kumar said action by the producers may help raise prices to break-even levels, but was unlikely to change the situation remarkably due to a supply surplus.
March Tocom rubber closed Y0.2 higher at Y179.6/kg in the night session, which is considered part of the next trading day.