Asian rubber market worries price further down

According to the Singapore news, due to the number one consumer of Chinese demand for light, the market is expected to rubber prices or further decline, which limits the Asian market this week buying rubber, but some market participants expect the supply will be tight in the coming months.

A trader from Thailand Hat Yai, said Chinese tire manufacturer with the purchase with the use of the forward cargo was not scheduled, although their rubber inventories low, but tire inventories remain high, and the overall economic uncertainty . February and April sent to China, Thailand STR20 rubber prices about $ 1.39-1.42 per kg, unchanged from last week. But Thai RSS3 grade rubber prices rose to $ 1.70-1.74 per kg last week, and less than $ 1.70, due to weak prices to attract some tire manufacturers procurement.

A Singapore-based trader said, I think the market is not all bearish, but really not very strong buying interest. Most vendors do not want to sell, unless the buyer is willing to offer a higher price. Currently Singapore rubber futures price of $ 1.36-1.40 per kilogram, some Asian buyers refuse to sell at this price level, they require more expensive than the standard 4-5 cents higher.

Rubber producing countries, Thailand and other winter approaching, tapping during the reduction, thus rubber production in February-April period will usually decline may lead to tighter supplies in the short term, this will bring some price support.