Asian Rubber Settles Higher; China Jumps Back
9 October 2014, 17:58 SEAST
Asian rubber settled higher Thursday on the prospect of collective producer action to restrict supply.
Major rubber producing countries Thailand, Indonesia and Malaysia are set to discuss measures to stem heavy losses in the next few weeks, said Thailand’s Minister of Agriculture and Agricultural Cooperatives, Pitipong Pungbun Na Ayudhya, earlier this week.
Benchmark natural rubber on the Tokyo Commodity Exchange settled Y1.2 higher at Y182.3 a kilogram with limited upside as the market was skeptical about the impact of any joint action.
“Such announcements require collective action to enforce and from past instances, we don’t see market participants being able to collaborate effectively,” said a Singapore-based trader.
March Tocom rubber closed Y0.5 higher at Y182.8/kg in the night session, which is considered part of the next trading day.
China was back in the spot market after a week of market closures due to public holidays.
Buyers in China “think current prices are attractive. They also want the stocks shipped as fast as possible, so it’s an indication of demand,” said another trader in Singapore.