[Dow Jones] Physical prices of Thai USS3 rubber marginally higher. Rain in key southern producing regions now eased, says trader in Phuket. “We haven”t had any rain for the past two days, so you would expect supply to start coming out, but farmers are holding on to whatever stock they have as they expect prices could rise further this week, following recent gains in futures,” says trader. Thai USS3 traded in Hat Yai Central Market at THB56.89/kg vs THB55.89/kg Friday.

Source: Dow Jones

SINGAPORE, July 20 (Reuters) – Japan’s largest tyre maker, Bridgestone Corp <5108.T>, bought some Thai tyre grade rubber at a bargain, while main consumer China may step up purchases before futures prices rise further.
Other tyre manufacturers chased Indonesian rubber for nearby shipments and dealers expect buyers from China to re-enter the market soon on worries that firming oil prices could drag prices on Tokyo or Shanghai futures even higher.
Thai RSS3 was sold to Bridgestone at $1.745 a kg late on Friday for September shipment, below Monday’s level of $1.80 because sellers jacked up prices after the most active contract on Shanghai futures rallied to its strongest since October.
“China is still looking for nearby shipments but they claim the price is too high. But the price keeps coming up while they are on the sidelines, so they will have to decide and buy soon,” said a dealer in Thailand’s southern city of Hat Yai.
“If they need the cargo, they have to pay up,” he added.
Tokyo rubber futures were closed for a public holiday. Most active Tokyo rubber futures, currently Decemmber rose two percent to a one-month high above 170 yen on Friday on improved technical charts and firm oil. [RUB/AS]
Dealers noted deals between sellers in Indonesia and unspecified tyre makers at around 72.00 U.S. cents per pound ($1.59 a kg).
SIR20 also changed hands at 73.00 cents free-on-board Belawan in North Sumatra for September delivery and at 73.50 cents FOB Surabaya in East Java for October and December shipments. Malaysia’s SMR20 was offered at $1.70 a kg but there were no buyers.
“Major tyre makers concentrate on August and September and pay 72.50 cents, which, at present, undercuts even African-origin offerings,” said a physical dealer in Jakarta, who sells SIR20 grade.
“Interest is brisk, and while some analysts look for a correction, just as many pencil in further rises in the coming weeks as the Chinese economy supports the rest.”
China has bucked the trend in the struggling global car industry. The China Association of Automobile Manufacturers said passenger car sales jumped 47.7 percent in June to 872,900, partly due to the government’s stimulus measures. [ID:nSHA165501]
On the supply front, unseasonal rains subsided at the weekend in main rubber producer Thailand, raising hopes that more rubber will enter the market in the next few days.
Supplies have been tight in Thailand after heavy rains hit plantations just after the end of the February to April wintering season, during which trees shed leaves and latex output drops.
“If the weather continues to be dry this week, then we expect supply will be much better next week,” said the dealer in Hat Yai.
Oil firmed above $64 a barrel on Monday, extending last session’s 2.5 percent gains due to a rally in Asian stocks and fall in the dollar on hopes of a global economic recovery.

Source: Reuters

[Dow Jones] Physical prices of Thai USS3 rubber up, with rain still hampering tapping operations in key southern producing regions, while gains in futures, recent firmness in crude oil prices also supportive factors, market observers say. Thai USS3 traded on Hat Yai Central Market at THB55.89/kg vs THB53.82/kg yesterday. (ANJ)

Source: Dow Jones

July 17 (Bloomberg) — Rubber jumped to a five-week high on speculation reduced supplies and a recovery in the world economy will increase demand for the commodity.

Rubber futures in Tokyo have gained 8.3 percent this week, the biggest advance since March 27, on plans by major producers to extend export reductions in the second half to bolster prices. June industrial production in China, the world’s largest car market and rubber consumer, was 10.7 percent higher than a year earlier, the government statistics bureau said today.

“Fundamentally, rubber futures will remain firm,” said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. in Tokyo. “Supplies have been limited, while car production has gradually increased.”

Natural rubber for December delivery rose as much as 3.1 percent to 171.2 yen a kilogram ($1,826 a metric ton) on the Tokyo Commodity Exchange, the highest since June 11. It closed at 171.1 yen.

“We are seeing a bit of position-squaring ahead of the long weekend,” Kikukawa said. The market is closed on July 20 for Japan’s Marine Day public holiday.

Thailand, Indonesia and Malaysia will reduce shipments by as much as 48,000 tons a month in the second half, Abdul Rasip Latiff, chief executive officer of the International Rubber Consortium Ltd., said July 15. The trio cut exports by 540,000 tons in the first five months of the year, more than the 414,000 ton reduction planned for the first-half, he said.

Supplies Tighten

Rubber, used to make car tires, has gained 26 percent this year as supplies tightened and global car sales started a slow recovery. New-car registrations in Europe rose 2.4 percent to 1.46 million vehicles in June, the first gain since April 2008, the Brussels-based European Automobile Manufacturers’ Association said July 15.

China’s sales of cars and other passenger vehicles surged 48 percent to 872,900 last month, the China Association of Automobile Manufacturers said July 9.

Prices also gained today after shippers in Thailand raised their offers for RSS-3 grade rubber for August delivery to $1.71 a kilogram yesterday from $1.67 on July 15, according to Takaki Shigemoto, an analyst at broker Okachi & Co. in Tokyo.

Rubber for November delivery on the Shanghai Futures Exchange, the most-active contract, rose 2.4 percent from the previous day’s close to end at 16,465 yuan ($2,410) a ton.

Source: Bloomberg.com

July 16 (Bloomberg) — Rubber climbed to a one-month high on increased offering prices as Thailand, Indonesia and Malaysia, the world’s largest producers, curb exports.

Shippers in Thailand increased their offers for RSS-3 grade rubber for August shipment to $1.71 a kilogram today from $1.67 yesterday and $1.63 on July 10, according to Takaki Shigemoto, an analyst at broker Okachi & Co. in Tokyo. Rubber futures in Tokyo jumped as much as 4.4 percent today.

“The market will see a supply bottleneck as car production has gradually been increasing,” Shuji Sugata, research manager at Mitsubishi Corp. Futures & Securities Ltd., said by phone today. “The market was also supported by external factors, including a rise in crude oil and a weaker yen.”

Natural rubber for December delivery added as much as 7.1 yen to 167.8 yen a kilogram ($1,781 a metric ton), the highest since June 15, on the Tokyo Commodity Exchange, and closed at 166.0 yen. The price has gained 22 percent this year.

Thailand, Indonesia and Malaysia will reduce shipments by as much as 48,000 tons a month in the second half, Abdul Rasip Latiff, chief executive officer of the International Rubber Consortium Ltd., said yesterday. The countries cut exports by 540,000 tons in the first five months of the year from the year- earlier period, higher than the 414,000 tons originally planned for the first-half, he said.

Export Curbs

The raw material, used for car tires, slumped 56 percent in 2008 after the global recession slashed demand. The three nations, which harvest about 7 million tons of rubber a year, announced a plan in December to curb exports by 700,000 tons.

Crude oil rose as much as 0.8 percent to $62.01 a barrel today after gaining 3.4 percent yesterday. It traded at $61.46 by 3:32 p.m. Tokyo time. Higher crude oil prices increase the cost of making rival synthetic rubber.

The dollar was down 0.3 percent at 93.98 yen after advancing 1.8 percent in the previous three days.

Rubber for November delivery on the Shanghai Futures Exchange, the most-active contract, added 0.6 percent from the previous day’s close to 16,105 yuan ($2,357) a ton at 2:33 p.m. local time after rising to 16,305 yuan.

Source: Bloomberg