Tyre makers buying up rubber from S-E Asia

Tyre manufacturers have snapped up rubber for nearby shipment, buying before prices rise again on expectations of more stimulus measures from the US Federal Reserve.

Tyre manufacturers have snapped up rubber from Malaysia, Indonesia and Thailand for nearby shipment, buying before prices rise again on expectations of more stimulus measures from the US Federal Reserve, dealers said, though there are some concerns over rising inventory in main consumer China.

Tyre grades from South-east Asian rubber producers for October/November delivery were traded overnight at between US$2.63 and US$2.93 a kg on a free on board (FOB) basis, they said, to buyers from Singapore, Europe, the US and China.

"Buyers are everywhere, but I would say the demand is low in China because tyre makers there are running at low production capacity," said a dealer in Kuala Lumpur. "Usually (Chinese tyre firms) buy ahead, but at the moment they are buying just in time as they are not certain about tyre sales."

Vehicle sales in China rose 8.3 per cent in August from a year earlier, maintaining a steady pace, but far from the blistering speed of recent years because of a recent fuel price rise and a slowing economy.