Asian Rubber Settles Little Changed As Producers Aim To Curb Supply


24 June 2015, 18:00 SEAST


Asian rubber settled mostly little changed Wednesday as traders looked for fresh cues amid the summer lull.


Benchmark November natural rubber futures on the Tokyo Commodity Exchange settled Y1.5 higher at Y232.2 ($1.87) a kilogram in a day of range-bound movement.


A Singapore-based trader said Tocom rubber was supported by the weak yen, so despite the gains, prices on Tocom were below those on the physical market and playing catch-up.


However, overall tepid trading sentiment was keeping activity limited, so major producers were making an effort to curb supply. International Rubber Consortium Chief Executive Yium Tavarolit said in his latest market report that as global demand for rubber slowed, the world’s largest producer and exporter–Thailand–was accelerating the felling of old rubber trees on government land.


Also, Thailand and fellow major rubber producers Indonesia and Malaysia were holding talks with Vietnam, the world’s third-largest producer, to encourage farmers to switch crops and slow supply growth.


November Tocom rubber closed Y1.0 lower at Y231.2/kg in the night session, which is considered part of the next trading day.