Asian Rubber Settles Flat As Producers Aim To Support Prices


15 October 2014, 18:12 SEAST


Asian rubber settled flat Wednesday as crude-oil prices continued to fall, although the downside was limited due to efforts by producing trade associations and governments to support the market.


Benchmark March natural rubber on the Tokyo Commodity Exchange settled Y0.1 lower at Y184.1 a kilogram.


The International Rubber Consortium said on its website that the group met representatives from member countries of the Association of Natural Rubber Producing Countries last Friday and that the producing countries have agreed to not sell rubber at levels lower than current prices.


“This action would prevent the smallholders from suffering further losses as the current price is lower than the cost of production,” IRCo said.


March Tocom rubber closed Y0.4 higher at Y184.5/kg in the night session, which is considered part of the next trading day.


The spot market was dominated by dealers who were covering their physical short positions.