[Dow Jones] Physical prices of Thai USS3 rubber rise to THB102.56-THB102.79/kg vs THB100.89-THB101.29/kg yesterday, taking cues from bullish futures markets amid wintering season. Outside central markets, some factories even paying THB104-THB105/kg. Extreme dry weather causing low output, Thai factories fret over rising raw material costs, dwindling margins. “Even if it rains now, the USS3 will be out on the market in May, not tomorrow,” says Hat Yai-based exporter. Total quantity sold in three central markets of Thailand estimated at 69 tons versus 54 tons yesterday: 42 tons in Hat Yai, 20 tons in Surat Thani, 7 tons in Chandee.

Source: Dow Jones

BANGKOK, March 25 (Reuters) – Tokyo rubber futures hit a
two-week high on Thursday as recent weakness in the yen spurred
buying and tight physical supply continued to lend support,
dealers said.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for August delivery rose 9.6 yen, or 3.3
percent, to settle at 297.6 yen ($3.23) per kg. It rose as high
as 297.9 yen, the highest since March 9.
* The nearby March contract, which is due to expire on
Thursday, settled at 308.5 yen per kg.
* The dollar hit a 10-week high of 92.42 yen on
Wednesday although it eased on Thursday. [USD/]
* A weaker yen makes dollar-based rubber expensive and
usually encourages investors to take speculative buying positions
in TOCOM rubber futures.
* Production in Thailand and Malaysia, the biggest and
third-biggest producers, has been falling since late February as
dry weather cut latex output. Farmers were expected to stop
tapping rubber trees completely in April.
($1=92.11 Yen)

Source: Reuters

March 22 (Bloomberg) — The global natural rubber market has entered a “demand-driven bullish phase” as buyers led by China boost imports to meet rising tire demand, the Association of Natural Rubber Producing Countries said.

A target of 6 percent growth in world supply this year may not be met because of drought in major producing nations, the group, which represents countries accounting for 94 percent of global rubber production, said in a newsletter.

Rubber, used in tires and gloves, doubled in price last year as China overtook the U.S. as the world’s largest auto market, boosting vehicle sales by more than 40 percent. China is the world’s largest rubber consumer.

“The March scenario is very different from what was forecast earlier and there will be some negative impact on output because of the drought,” Jom Jacob, senior economist at the association, said in a phone interview from Kuala Lumpur today. “Demand is very high in major consuming nations.”

Rubber for August delivery gained as much as 1.5 percent to 289.8 yen per kilogram ($3,202 a metric ton) on the Tokyo Commodity Exchange before settling at 289.1 yen on March 19. The market is closed today for a holiday.

Expansion in output may be limited by “the severity of drought” in major producing countries, the association said. Production may gain to 9.54 million tons this year, according to a survey of member countries early this month, the association said. That compares with an International Rubber Study Group forecast last week of as much as 10.6 million tons.

‘Buoyant Demand’

“Preliminary estimates of imports and consumption in January and February for China, India and Malaysia are clear evidence of buoyant demand,” the association said. Chinese imports of natural rubber surged 63 percent in the first two months of this year, while Malaysia boosted imports by 34 percent, it said.

China’s compound rubber imports more than doubled to 127,000 tons in the first two months of this year, while natural rubber imports climbed to 267,000 tons, the association said.

“Large-scale capacity addition taking place in the Indian auto tire manufacturing industry indicates the possibility of a further acceleration in natural rubber demand in the country and more dependence on imports,” the association said.

Rising disposable incomes in the world’s second-fastest growing major economy may more than double car sales to 3 million annually by 2015, according to a 2006 forecast by the government. That has prompted Ford Motor Co., Volkswagen AG and other automakers to expand factories and introduce new vehicles in the country.

The association represents Cambodia, China, India, Indonesia, Malaysia, Papua New Guinea, Sri Lanka, Thailand and Vietnam.

Source: Bloomberg

[Dow Jones] Physical prices of Thai USS3 rubber rise to THB100.89-THB101.29/kg vs THB100.49-THB100.85/kg yesterday as seasonal dry weather, drought hit country”s rubber output. Some factories even paying THB102.5-THB103.5/kg outside central markets in the morning. “Even if we offer higher prices, stocks are extremely low,” says exporter in southern Thailand. Total quantity sold in Thailand”s three central markets estimated at 54 tons versus 45.25 tons yesterday: 22 tons in Hat Yai, 12 tons in Surat Thani, 20 tons in Chandee.

Source: Dow Jones

BANGKOK, March 24 (Reuters) – Tokyo rubber futures ended
slightly higher on Wednesday on the back of strong demand at a
time of tight physical supply, but gains were limited by weaker
oil prices, dealers said.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for August delivery rose 0.2 yen to settle at
288.0 yen ($3.18) per kg.
* “TOCOM should remain supported as physical supply was
tight. However, there was no further support from the technical
side such as oil prices, which were weak,” a Japanese dealer
said.
* Production in Thailand and Malaysia, the biggest and
third-biggest producers, has been falling since late February as
dry weather cut latex output. Farmers were expected to stop
tapping rubber trees completely in April.
* Oil fell towards $81 on Wednesday after a report showed
U.S. crude inventories surged, deepening concerns about the
recovery in demand in industrialised countries as Europe
struggles to manage Greece’s debt crisis. [ID:nSGE62N03C]
* Higher oil prices make petrochemical-based synthetic rubber
more expensive and usually encourage tyre makers to shift to
natural rubber.
* TOCOM rubber was expected to push higher on Thursday after
it managed to stay above the important psychological level of 285
yen, dealers said.
($1=90.45 Yen)

Source: Reuters