Asian rubber futures settled higher Monday on the back of strong demand as importers rushed to purchase more volumes, expecting prices to rise further.
Importers in China bought a total of more than 1,000 metric tons of STR20-grade Thai rubber in several deals around $2,505 per ton, cost, insurance and freight, for shipment in December.
Physical prices of USS3 grade raw material in the central markets of Thailand were steady above THB76 per kilogram due to demand from factories.
The benchmark Tocom RSS3 April contract settled Y1.5 higher at Y236.7/kg, off an intraday high of Y239.4, a level not seen since last October.
Prices were steady during the night session, and the April contract ended at Y238.6/kg. Night session prices aren't included in intraday trading.
Natural rubber stocks in Japan as of Oct. 31 declined to 4,038 metric tons from 4,195 tons Oct. 20, according to data issued by the Rubber Trade Association of Japan.
Japan's natural rubber stocks have declined 60% since end-May.
Tight supply in Thailand and Indonesia, the world's top producing and exporting countries, along with strong demand from tire makers in Japan, is dragging down stocks.
Traders said prices may now even rise above Y240/kg.
Rubber is strong on its own fundamentals despite lack of positive leads from crude oil, said a broker in Tokyo.
Nymex light, sweet crude for December delivery settled at $76.35 a barrel Friday, its lowest settlement since Oct. 14, but it rose by around $1, or 1.3%, in Asian trading.
The benchmark March contract on the Shanghai Futures Exchange settled CNY165 higher at CNY20,800/ton. China is world's largest consumer of rubber by volume.
At the Agricultural Futures Exchange of Thailand, the benchmark June RSS3 contract settled THB1.00 higher at THB84.15/kg.
Asian physical prices were steady due to strong demand. "Many traders who haven't covered their requirements are now rushing to finalize deals, expecting a further rise in prices," said an exporter in Singapore.
This has also added to concerns that prices may fall sharply after demand eases, raising specter of purchase defaults, he said.
(Source: http://irco.biz)
Importers in China bought a total of more than 1,000 metric tons of STR20-grade Thai rubber in several deals around $2,505 per ton, cost, insurance and freight, for shipment in December.
Physical prices of USS3 grade raw material in the central markets of Thailand were steady above THB76 per kilogram due to demand from factories.
The benchmark Tocom RSS3 April contract settled Y1.5 higher at Y236.7/kg, off an intraday high of Y239.4, a level not seen since last October.
Prices were steady during the night session, and the April contract ended at Y238.6/kg. Night session prices aren't included in intraday trading.
Natural rubber stocks in Japan as of Oct. 31 declined to 4,038 metric tons from 4,195 tons Oct. 20, according to data issued by the Rubber Trade Association of Japan.
Japan's natural rubber stocks have declined 60% since end-May.
Tight supply in Thailand and Indonesia, the world's top producing and exporting countries, along with strong demand from tire makers in Japan, is dragging down stocks.
Traders said prices may now even rise above Y240/kg.
Rubber is strong on its own fundamentals despite lack of positive leads from crude oil, said a broker in Tokyo.
Nymex light, sweet crude for December delivery settled at $76.35 a barrel Friday, its lowest settlement since Oct. 14, but it rose by around $1, or 1.3%, in Asian trading.
The benchmark March contract on the Shanghai Futures Exchange settled CNY165 higher at CNY20,800/ton. China is world's largest consumer of rubber by volume.
At the Agricultural Futures Exchange of Thailand, the benchmark June RSS3 contract settled THB1.00 higher at THB84.15/kg.
Asian physical prices were steady due to strong demand. "Many traders who haven't covered their requirements are now rushing to finalize deals, expecting a further rise in prices," said an exporter in Singapore.
This has also added to concerns that prices may fall sharply after demand eases, raising specter of purchase defaults, he said.
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