Tyre manufactures from all over the world have ordered rubber from the top three producers of rubber in Southeast Asia, namely Thailand, Indonesia and Malaysia before the rubber market gets affected by the stimulus measures from the US Federal Reserve which is expected to roll up the prices of rubber in the rubber market industry. However, dealers said that there are some issues regarding the rising inventory in China, the main consumer of rubber.
The dealers of rubber also said that that tyre grades from Southeast Asia rubber supplies for October/November delivery were bargained over a night between $2.63 and $2.93 per kilogram on a FOB basis.
A dealer in Kuala Lumpur said that buyers of rubber are everywhere, except for China as the tyre makers there are decreasing its production capacity. “Usually Chinese tyre firms buy ahead, but at the moment they are buying just in time as they are not certain about tyre sales.” In August 2011, the vehicle sales in China jumped to 8.3% but now in a steady pace as the car sales lowered due to the slowing economy of the country and the rise of the fuel price. (PRA)