Physical prices of USS3 grade raw material in Thailand have risen sharply in the past few weeks as rains affect supply and are now being quoted above THB78 a kilogram, trading executives said Thursday.
They said daily market arrivals in the central markets of Thailand are less than 50 metric tons and added that factories are offering higher rates outside the central markets.
"Factories need more raw material to execute their orders for processed rubber, but availability is less than 50 tons," said a trader in Hat Yai.
He said exporters had committed to ship RSS3 and STR20 grade rubber at cheaper rates a few months ago, but higher raw material costs have now put them in a quandary.
In August, exporters from Thailand sold RSS3 grade rubber for October/November/December shipment between $1,650-$2,000/ton, free-on-board, but due to rising USS3 costs, executing these orders is difficult. RSS3 grade is now being offered around $2,600/ton.
(Source: http://irco.biz)
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