Asian rubber futures settled mostly higher Friday, snapping a four-day falling streak on buying support amid indication of revival in demand in China and U.S. and tight inventories in Japan.
TSR20 grade again traded at a premium to RSS3 grade on the Singapore Commodity Exchange due to tight supply in Indonesia.
The benchmark May RSS3 contract on the Tokyo Commodity Exchange settled Y3.2 higher at Y247 a kilogram.
Prices rose further during the night session, with the May contract ending at Y248/kg. Night session prices aren't included in intraday trading.
"We can't say the market has recovered, but it's holding on because funds aren't selling at the moment," said a Tokyo-based executive at Okachi Corp.
Higher crude oil and gold prices along with a weaker yen during Asian trading hours were also supportive for prices, he said.
Prices fell this week because funds which had rolled over their positions at higher prices cut their losses, he added.
Most traders put immediate technical resistance at Y250/kg.
"Prices fell almost 8% this week, leading to the perception among traders that they may have bottomed out," said an analyst in Singapore.
U.S. imports of technically specified natural rubber, or TSR, in October are estimated by the government up 29% on month at 40,121 tons.
"Some companies have shifted their tire production for local use to the U.S. from China to avoid import tariffs," said an analyst in Singapore.
In September, U.S imposed 35% tariff on light-grade tires imported from China. The production transfer from China to Japan is nearly complete, but the transfer to the U.S. is ongoing, a spokesman for Japan's Toyo Tires told Dow Jones Newswires earlier this week.
China's natural rubber imports in November are estimated 20% higher on month at 120,000 tons, according to preliminary government data.
China's tire output rose 36% on year in November to 60.19 million units. November passenger vehicle sales in China almost doubled on year to a record 1.04 million units. Tax incentives for new automobile buyers have been extended to next year.
However, China's inventories of natural rubber are high, and as of Thursday, stocks at warehouses recognized by the Shanghai Futures Exchange rose 6% on week to 124,053 tons.
The benchmark March contract on the Shanghai Futures Exchange settled CNY150 higher at CNY21,650/ton.
The benchmark July RSS3 contract at the Agricultural Futures Exchange of Thailand settled THB2.80 lower at THB88.40/kg.
Asian physical prices were steady to lower. There was brisk selling by some factories inThailand, as markets were closed Thursday for a public holiday. "Our factory sold close to 1,000 tons STR20 grade rubber at $2.74/kg," FOB, a Phuket-based trading executive said.
(Source: irco.biz)
No comments:
Post a Comment