[Dow Jones] Tocom RSS3 rubber futures settles lower but off intraday lows on short covering, traders say. “Demand-side fundamentals have slightly weakened due to fewer purchases by China, which may keep prices under pressure for some time,” says analyst in Singapore. Prices recovered marginally because many investors covered their shorts toward the day”s close, says Tokyo-based broker. Tocom rubber futures settles Y5.8 lower at Y197.3/kg after reaching intraday low of Y194.5. (SAM)

Source: Dow Jones

[Dow Jones] Physical prices of USS3 rubber in Thailand steady despite doubling of supplies as demand remains strong. Prices around THB66.80-THB67.31 vs THB66.86-THB67.58 yesterday. Total sales in three central markets of Thailand higher at 113.20 tons vs 56.20 tons yesterday; sales today at 7.20 tons in Hat Yai, 56 tons in Surat Thani, 50 tons in Chandee. Sales estimated at 70.05 tons Monday. “Buyers took advantage of the increase in market arrivals and tried to lap up the volumes available,” says Hat Yai-based trading executive. Thai processors of RSS3, STR20 rubber strapped of USS3 raw material for last several months due to heavy rains, less production. (SAM)

Source: Dow Jones

[Dow Jones] RSS3 rubber prices on Agricultural Futures Exchange of Thailand lower on strong selling pressure, tracking decline in Shanghai market. Traders setting up more short positions, says broker in Bangkok. “Many investors expect Tocom to open lower tomorrow after a 3-day holiday and are going short to reap profits later,” says Thailand-based trading executive. Total volume for RSS3 rubber traded on AFET so far today at 265 lots, including 232 lots for benchmark April contract. April RSS3 futures trading THB1.65 lower at THB70.60/kg. Most traders put immediate support at THB70.50, then THB70.20. (SAM)

Source: Dow Jones

[Dow Jones] RSS3 grade rubber futures on Agricultural Futures Exchange of Thailand slightly lower on decline in China”s natural rubber imports. “Since Tocom is closed today and major buyers Indonesia and Malaysia are also on holiday, trade participation is mostly taking leads from China,” says Bangkok-based broker; adds prices likely to be rangebound in near term. China”s August natural rubber imports estimated 9% lower vs previous month; up 26% in July vs June. Overall supply fundamentals still strong but some downward pressure due to fall in rubber imports by China in August, says another Thailand-based broker. Benchmark AFET April RSS3 rubber futures trading THB0.25 lower at THB72.30/kg, off intraday high of THB72.70. (SAM)

Source: Dow Jones

Sept. 18 (Bloomberg) — Rubber dropped for the first time in four days, booking the worst loss in four weeks, amid concern that demand in China may slow after the U.S. imposed tariffs on tire imports from the Asian country.

Futures in Tokyo lost as much as 2.4 percent, reversing a 5.8 percent advance in the previous three days. About 30 tire makers may either have to cut production or suspend output completely because they can’t export to the U.S., according to the China Rubber Industry Association yesterday. The U.S. imposed tariffs of 35 percent on tires from China in response to a so-called safeguard petition filed to protect U.S. producers.

“The market was capped by concern the U.S. action may have a negative impact on consumption,” Hisaaki Tasaka, analyst at Tokyo-based commodity broker ACE Koeki Co., said today by phone.

February-delivery rubber fell 1.8 percent to settle at 203.1 yen a kilogram ($2,230 a metric ton) on the Tokyo Commodity Exchange. Prices dropped 5.6 percent this week, the largest loss since the week ended Aug. 21.

Futures also declined as investors reduced holdings before the Tokyo exchange closes from Sept. 21 to Sept. 23 for public holidays, Tasaka said.

Rubber gained 49 percent this year as surging car sales in China, the world’s largest consumer, spurred investor buying. China’s passenger-car sales rose a record 90 percent last month, according to the China Association of Automobile Manufacturers. A 4 trillion yuan ($586 billion) stimulus plan has shielded the country from the global recession, helping car sales jump at least 45 percent for four months in a row.

Stockpiles Rising

January-delivery rubber on the Shanghai Futures Exchange lost 1.3 percent to close at 17,285 yuan ($2,537) a ton.

Prices in Shanghai dropped on speculation stockpiles may keep rising after reaching the highest level since March 2008 last week, Tasaka said. Rubber inventories monitored by the exchange increased 5,755 tons to 91,551 tons, the bourse said Sept. 11, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin.

Source: Bloomberg