[22 Dec] Asia Rubber Settles Mixed; Malaysia Compound Rubber Exports up

Asian rubber futures settled mixed Monday on a lack of fresh leads after moving both ways in sluggish, rangebound trading, said trade participants.

Prices of USS3 raw material in the three central markets of Thailand eased as daily availability rose above 200 metric tons, a rare instance, as arrivals have mostly been below 100 tons this year.

The benchmark May RSS3 contract on the Tokyo Commodity Exchange settled Y0.6 higher at Y270.2 a kilogram.

Prices eased during the night session, and the May contract ended at Y268.4/kg. Night session prices aren't included in intraday trading.

"Rubber prices are consolidating around current levels," said a Tokyo-based broker.

He said the absence of fresh leads from other commodities has prevented further gains in prices. Most traders put immediate resistance at Y273/kg.

Malaysia has increased its compound rubber export projection for 2009 by 11% to a record 398,514 metric tons, due to a surge in shipments to China.

Actual exports to China during the January-September period totaled 312,130 tons, according to the data, up from an estimate of 302,664 tons. Malaysia's total compound rubber exports during the period are now pegged at 325,407 tons.

Compound rubber export figures have increased in importance recently, as many exporters are blending natural rubber with miniscule amounts of synthetic rubber to be eligible for duty-free imports by China.

The benchmark March contract on the Shanghai Futures Exchange settled 0.6% higher at CNY23,215/ton.

The benchmark July RSS3 contract on the Agricultural Futures Exchange of Thailand settled 1.5% lower at THB95.50/kg.

Asian physical prices were slightly higher, but buyers kept to the sidelines.

"It being the end of the year, buyers are cautious and not in a hurry to make purchases at current high levels," said an exporter in Singapore.

Special grade STR20 compound rubber was sold to a buyer in China at $2,950/ton, basis CIF, for February shipment, said a Thailand-based executive at a rubber manufacturing company.

(Source: irco.biz)