* Some Thai shipments delayed, traders shrug off violence
* SIR20, SMR20 done at $2.70 to $2.80/kg
* China chases nearby shipments
By Lewa Pardomuan
SINGAPORE, May 18 (Reuters) - Tight supply has caused the delay of several shipments of Thai rubber but the deadly violence in the capital Bangkok has had little impact on physical trading, dealers said on Tuesday.
China and major tyre makers such as Bridgestone Corp (5108.T) are in the market for nearby shipments, and a few deals for Indonesia's SIR20 and Malaysia's SMR20 were struck late on Monday at less than $3 a kg, they said.
But some consumers turned their backs on Thai RSS3 grade because of the high prices and a price gap between June and July cargoes. Heavy rains have disrupted tapping in main producer Thailand, leading to tight supplies.
"It's very difficult to trade now. Bridgestone is looking to buy RSS3 at $3.15 while sellers are quoting it at $3.40 for July shipment. The price gap is too big," said a dealer in Thailand'+s southern city of Hat Yai.
"There are some delays in shipments for May/June shipment mostly to major consumers such as Bridgestone and Michelin, but it has something to do with tight supply. There are no problems in the port of Bangkok. The protesters don't go into the port." Thai anti-government protesters agreed on Tuesday to talks brokered by a Senate leader to end Thailand's deadliest political crisis in 18 years, but analysts doubted the negotiations would halt the spiralling violence. [ID:nSGE64H027] Although the physical market was normal in Thailand, difficulties in getting raw material had caused a slowdown in activity. Consumers desperate for June shipment will have to pay as high as $3.60 a kg -- 20 cents higher than for July cargo.
Physical rubber struck a record high of $4.10 a kg in mid-April. For details on physical prices, click on [ID:nSGE64H02D]
In second largest producer Indonesia, SIR20 changed hands at $1.22 per pound for July delivery and at $1.23 to $1.24 per pound for June, indicating tightness in supply for prompt shipment.
"There are not many sellers around but we heard about several deals last night. China is around but they are not so aggressive," said a dealer in Indonesia's main growing island of Sumatra, referring to the world's largest consumer.
China's rubber stocks have seen a steady decline since February as consumers turned to domestic warehouses for supplies but there were signs they were stocking up again.
Deliverable rubber inventories in warehouses monitored by the Shanghai Futures Exchange fell 16.6 percent from one week earlier, the exchange said on May 14
"China has been buying quite substantially in the past few days, but maybe because we are selling cheaply," said a physical dealer in Singapore. "We sold SMR20 at $2.80, while others offer the grade at $2.90." (Additional reporting by Apornrath Phoonphongphiphat in BANGKOK; Editing by Ed Lane)
(reuters.com)
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