BANGKOK, Nov 24 (Reuters) – The world’s top three rubber producing countries will meet on Thursday to seek ways to shore up prices hit by sagging demand and fears of a global recession, a spokesman for the group said on Monday.
The meeting of the International Rubber Consortium (IRCo), which comprises Thailand, Indonesia and Malaysia, will discuss a variety of possible measures, including a rubber buying scheme to help support prices now near 4-year lows.
“After our last meeting in October, we came up with measures to cut supply, but prices kept falling. So, we need to meet again to discuss the situation,” IRCo chief secretary Yium Tavarolit told Reuters.
The price of Thai USS3, the raw material export-grade rubber sheet (RSS3), fell to 43 baht per kg on Monday, the lowest since February 2005, due to falling demand, traders said.
The IRCo, whose members account for 70 percent of global rubber output, agreed on Oct. 17 to jointly cut production by 215,000 tonnes, or 3 percent, next year.
But the market largely ignored the measure.
“Prices do not reflect the real market situation. It’s down because of speculation in the futures market. That’s why we need to meet again to do something,” Yium said.
Tokyo rubber futures prices (TOCOM) fell to a near 4-year low on Friday due to stop-loss selling as players liquidated contracts to avoid risks after oil fell below $50 a barrel.
TOCOM rubber rebound slightly to settle at 138.0 yen ($1.44) per kg on Friday. The market was closed on Monday for a public holiday and trading will resume on Tuesday.
Dealers said they expected TOCOM prices to fall further on Tuesday due to weaker oil prices which were unlikely to rebound significantly.
“Some pessimistic dealers expect TOCOM prices to fall below 100 yen on fears of falling demand,” a trader in Thailand Hat Yai Rubber centre said, noting that auto sales were slumping worldwide.
($1=95.91 Yen)

Source:  Reuters

[Dow Jones] Asian cash rubber prices lower in very thin trade following weekend and on closure of bellwether Tocom for Japan public holiday, say traders. Further downside likely due to sluggish consumer uptake; supply situation normal though sporadic rain continues to disrupt tapping in Thailand, Malaysia; processors are now adjusting production on back of slowing demand, says trader in Singapore. For a daily breakdown of cash prices for all rubber grades, keyword search ASIAN PHYSICAL RUBBER PRICES to see the item. (ANJ)

Source:  Dow Jones Newswires

BANGKOK, Nov 21 (Reuters) – Thailand’s annual export growth fell sharply in October to its slowest pace in six years as consumers reined in spending due to a worsening global economy.
Exports rose 5.2 percent to $15.27 billion in October from the same month in 2007 after a 19.4 percent rise in September, and compared to 4.7 percent in July 2002, the Commerce Ministry said.
“We had expected a slowdown in export growth, but not as low as 5 percent,” said Pimonwan Mahujchariyawong, an economist at Kasikorn Research who had forecast 8-10 percent growth.
“It will be more terrible in the first quarter of next year because we might see a contraction in growth as a result of the global economic slowdown,” she said.
Kasikorn’s forecast for 2009 was for between 3 percent growth and a contraction of 2 percent.
Rachen Pojanasunthorn, the ministry’s director general of export promotion, said the slower growth in October was partly due to a high base last year, when exports of food and agricultural products surged.
Thailand is the world’s biggest exporter of rice, tapioca and natural rubber, and also a major provider of autos, electronics and industrial products.
But demand from key markets in the United States, Europe and some Asian countries is falling as the global financial crisis batters their economies.
On Thursday, U.S. car giant General Motors Corp announced a two-month shutdown at its Thai plant, and Toyota Motor Corp <7203.T> said it planned production cuts in Thailand.
A Federation of Thai Industries survey of 200 large factories in the central province of Ayutthaya found 30 were considering cutting production or jobs, the Bangkok Post reported.
Another 79 firms had frozen their staff levels, it said.
“This is just the first chapter of a global recession. The real impact will be much clearer next January,” FTI vice chairman Tanit Sorat told the paper.
However, Rachen said rising imports of capital goods and raw materials was good news for export growth in 2009.
Imports rose 21.7 percent to $15.82 billion in October, compared to September’s 39.4 percent rise to $15.74 billion. The trade account had a deficit of $558 million in October after a $133 million surplus in August.
In the first 10 months of this year, exports rose 21.7 percent to $151.2 billion while imports rose 34.2 percent to $154.5 billion, leaving a trade deficit of $3.30 billion.
($1=35.20 Baht)

Source:  Reuters

BANGKOK, Nov 21 (Reuters) Tokyo rubber futures ended 2.4
percent lower on Friday due to short-covering supported by
recovering oil prices and an easing yen.
* The key Tokyo Commodity Exchange rubber contract for April
delivery <0#JRU:> fell 3.4 yen per kg, or 2.4 percent, to settle
at 138.0 yen ($1.45) per kg.
It fell to an intra-day low of 127.6 yen, the lowest since
January 2005, before short-covering set in.
* The benchmark contract closed Thursday at 141.4 yen, down
by the 16 yen daily limit, as selling gained momentum on weaker
oil prices and a stronger yen.
* Oil rebounded above $50 a barrel from an early 3-1/2-year
trough on Friday, tracking Asian equities that bounced back on
rumours that China may cut interest rates later in the day.
It was at $49.52 per barrel at 0850 GMT.
* The yen was weaker at 95.22 per dollar, falling from a
three-week high against the dollar on Thursday.
* On the physical front, rubber prices fell in line with
TOCOM prices amid thin trade as buyers were on the sidelines,
waiting to buy on dips.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH THURSDAY
Grade Price Change
Thai RSS3 (Dec) $1.60/kg -$0.05
Thai RSS3 (Jan) $1.60/kg -$0.05
Thai STR20 (Dec) $1.60/kg -$0.05
Thai STR20 (Jan) $1.60/kg -$0.05
Malaysia SMR20 (Dec) $1.60/kg -$0.05
Malaysia SMR20 (Jan) $1.60/kg -$0.05
Indonesia SIR20 (Dec) $0.70/lb -$0.02
Indonesia SIR20 (Jan) $0.70/lb -$0.02
Thai USS3 48 baht/kg – 5 baht
Thai 60-percent latex (drums, Dec) $1,300/tonne unchanged
Thai 60-percent latex (bulk, Dec) $1,200/tonne unchanged

Source:  Reuters

BANGKOK, Nov 20 (Reuters) – Tokyo rubber futures fell 10
percent on Thursday, its 16-yen limit, to hit a 3-½ year low
due to a firmer yen, softer crude oil and tumbling stock prices.
* The benchmark rubber contract on the Tokyo Commodity
Exchange for April delivery <0#JRU:> fell 16 yen, or 10.1
percent, to settle at 141.4 yen ($1.49) per kg, the lowest since
mid-2005.
* Fears of a deepening economic recession are stoking worries
about demand, which combined with a flight of fund money from the
market, have caused TOCOM prices to sink.
* Oil fell for a fifth straight session towards $50 a barrel
on Thursday as the fallout from the credit crisis hit the global
economy, crimping demand for fuel.
* The dollar was up 0.1 percent at 95.18 yen , slightly
above a one-week low of 95.66 yen hit on Wednesday. [USD/]
* The benchmark Nikkei average fell 6.89 percent on
Wednesday, due to the stronger yen and global recession fears.
[.T]
* Dealers said they expected TOCOM prices to fall further on
Friday if oil prices continued to fall.
* On the physical front, rubber prices dropped in line with
TOCOM, but trading volumes could rise as lower prices draw out
buyers ahead of the weekend, traders said.

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH WEDNESDAY
Grade Price Change
Thai RSS3 (Dec) $1.65/kg -$0.15
Thai RSS3 (Jan) $1.65/kg -$0.15
Thai STR20 (Dec) $1.65/kg -$0.15
Thai STR20 (Jan) $1.65/kg -$0.15
Malaysia SMR20 (Dec) $1.65/kg -$0.10
Malaysia SMR20 (Jan) $1.65/kg -$0.10
Indonesia SIR20 (Dec) $0.72/lb -$0.08
Indonesia SIR20 (Jan) $0.72/lb -$0.08
Thai USS3 53 baht/kg – 1 baht
Thai 60-percent latex (drums, Dec) $1,300/tonne unchanged
Thai 60-percent latex (bulk, Dec) $1,200/tonne unchanged

Source:  Reuters