SINGAPORE/BANGKOK, Jan 20 (Reuters) – Thai benchmark RSS3 rubber rose to $3.25 a kg on Wednesday, revisiting a 56-year peak scaled in mid-2008 on gains in Tokyo futures and prospects of demand from tyre makers and Chinese buyers, dealers said.
Speculative buying driven by strong oil and steady physical demand have sent the most active rubber contract on the Tokyo Commodity Exchange, currently June 2010 , to a 16-month high, lifting cash prices in Southeast Asia. [RUB/T]
Goodyear Tire & Rubber and Bridgestone Corp <5108.T> were buying rubber at above $3 a kg, while Singapore dealers, who normally sell the commodity to top consumer China, were also active in the physical market, they said.
“Most traders here in Hat Yai offer RSS3 at around $3.20 to $3.25 per kg today. That’s a reasonable price and demand remains strong,” said a dealer in Thailand’s rubber centre.
At more than $3 a kg, rubber prices in Southeast Asia are up six-fold from the start of this decade and at their highest level since 1952, when the Korean War sparked a commodity boom.
“It’s a hot market and it will keep going up,” said a physical dealer in Singapore.
RSS3 had been traded late on Tuesday as high as $3.22 a kg for nearby shipment, while some quantities of Indonesia’s SIR20 grade changed hands at $3.14 a kg. STR20 was also sold to Chinese buyers at $3.15 a kg.
“Yes, prices are quite high, however, buyers keep buying,” said another Singapore dealer.
“RSS3 was traded at $3.20 to $3.22. Buyers, including Bridgestone, Goodyear as well as Chinese tyre makers, have been buying rubber at those prices,” he added.
China’s auto market has overtaken the United States as the world’s largest thanks to a raft of policy incentives, and the Asian country has been a major bright spot amid a global industry downturn.
In 2009, a total of 10.3 million passenger cars were sold in the country, up 52.9 percent from a year earlier, data provided by the China Association of Automobile Manufacturers showed.
A rise in the cash market sparked worries that prices could drop whenever there was a correction in Tokyo futures but senior government officials from main producers Thailand, Indonesia and Malaysia said they were happy with the current prices.
The three countries, which account for 70 percent of global output, are weighing plans for a fund to regulate supply flows of the commodity to markets, but stopped short of action to rein in rising prices, a Malaysian minister said on Tuesday. [ID:nSGE60105W]

Source: Reuters

[Dow Jones] Physical prices of Thai USS3 rubber up, along with gains in futures earlier in the day; prices rise to THB96.32-THB96.46 from THB95.43-THB95.63 yesterday, traders say. “Bullish sentiment in the morning session supported prices, along with general tight supply, strong Chinese buying interest,” says Thai trader. Total sales in three central markets of Thailand 68.8 tons vs 86 tons yesterday: 20.8 tons in Hat Yai, 8 tons in Surat Thani, 40 tons in Chandee.(HWS)

Source: Dow Jones

[Dow Jones] Tocom RSS3 rubber futures settle higher, but well off earlier highs amid concern over talk of China curbing bank loans that sent commodities, equities lower in afternoon; Despite reports of China tightening lending, with spillover pressure on rubber “fundamentally, the uptrend is intact,” says analyst in Singapore, noting despite lofty price level, Chinese demand remains strong, while wintering season in Thailand is approaching. Benchmark Tocom June contract settles Y1.8 higher at Y300.8/kg after hitting intraday high of Y305.5/kg. (HWS)

Source: Dow Jones

[Dow Jones] Physical prices of Thai USS3 rubber higher as demand exceeds supply, sold at THB95.43-THB95.63 vs THB93.99-THB95.49 yesterday, traders say. “Due to rain-induced slow tapping, market arrivals are low,” says trader in Hat Yai. Total sales in three central markets of Thailand 86 tons vs 102 tons yesterday: 12 tons in Hat Yai, 28 tons in Surat Thani, 46 tons in Chandee. Ideally, total sales should be above 200 tons during this time of the season. (SAM)

Source: Dow Jones

[Dow Jones] Tocom RSS3 rubber futures settle higher as International Tripartite Rubber Council unable to take any steps to boost supply. “When overall fundamentals are strong and availability is reduced, there isn”t much that ITRC can do in the near term,” says analyst in Singapore. Vietnam becomes fourth member of ITRC, which now accounts for 84% of world”s natural rubber output, up from 76% with three members. ITRC”s expansion will tighten its grip on world rubber trade, analysts say; add outlook bullish for Tocom”s night session. Benchmark Tocom June contract settles Y4.2 higher at Y299/kg after reaching intraday high of Y303.1/kg. (SAM)

Source: Dow Jones