Thai RSS3 grade changed hands at lower prices this week after Tokyo futures slipped from two-month highs, dealers said on Wednesday, while some Indonesian sellers turned their backs on consumers.Tyre grade prices in Southeast Asia have tracked the fortunes of benchmark Tokyo futures, which have lost more than 20 percent in value this year on persistent worries about a surplus in the global market.
RSS3 for August/September was traded at $2.05 to $2.06 a kg in a series of overnight deals, down from last week’s offers of $2.17 a kg. Another Thai grade, STR20, was untraded and quoted at $1.80 a kg, down from $1.85 to $1.90 offered last week.”China is not chasing rubber,” said a dealer in Thailand, referring to the world’s largest consumer. “I think it’s still very cautious.”
But dealers expected a drop in rubber stocks in China’s bonded warehouses in Qingdao to help Tokyo futures regain strength, lifting physical prices. Thai sellers are reluctant to sell STR20 at production cost of around $1.80.Total rubber inventories in Qingdao have slipped to a five-month low, partly due to reduced demand for the commodity as a loan collateral amid the ongoing probe into an alleged fraud.
In other grades, Indonesia’s SIR20 was bid at $1.74 to $1.745 a kg but there were no deals despite buying interest from top tyre maker Bridgestone Corp. The grade was traded at around $1.76 last week.”Bridgestone does want to buy rubber, but sellers are not so keen,” said a dealer in Indonesia’s main growing island of Sumatra. “It’s hard to keep track on prices these days.”