Malaysia rubber market to follow performance of commodities in Tokyo

Malaysia rubber market to follow performance of commodities in Tokyo
MONDAY, MAY 23, 2011

KUALA LUMPUR: The Malaysian rubber market is expected to follow the performance of the futures market on the Tokyo Commodity Exchange this week amid continuous tight supply, dealers said.
They said the tight supply was expected to continue this week due to the current wet season in major producer countries.
A dealer said buying activities this week were expected to be minimal due to the competition from the regional markets.
On a holiday-shortened week, the Malaysian Rubber Board's official physical price for tyre-grade SMR 20 rose 44.5 sen to 1,361.5 sen per kg from previous Friday's 1,317 sen.
Latex-in-bulk rose 8.5 sen to 949.5 sen per kg from last week's 941 sen.
The unofficial closing price for SMR 20 jumped 32 sen to 1,358 sen from 1,326 sen per kg registered in the previous week and latex-in-bulk added five sen to 949.5 sen per kg from 944.5 sen previously.
The marekt was closed last Tuesday for Wesak Day. Bernama




Rubber prices may dip by 11 pc from May-end: Experts


SUNDAY, MAY 22, 2011


New Delhi, May 22 (PTI) Rubber, used in tyre and other industries, is expected to get cheaper by 11 per cent from May-end onwards on expectation of higher domestic output and cheaper imports.
Rubber prices, which are currently ruling at Rs 222 per kg, are likely to decline further to Rs 200 per kg from May-end, say industry experts.
Spot rubber prices have been sliding since April 25.
"Rubber prices may fall to Rs 200/kg from last week of May onwards and this negative trend may spill over in June," Indian Rubber Dealers Federation President George Valy said.
Prices are down because good weather condition is supporting rubber tapping, signalling prospects of higher production. Besides, the international market is conducive for import of rubber as global prices are also down, he said.
The country''s natural rubber production is expected to touch 9,02,000 tonnes in 2011-12.
Valy also said that farmers are expected to sell off maximum of their stored stock before the peak monsoon and this may weigh on prices.
In the rainy season, rubber gets damaged by catching fungus due to wet and humid weather conditions, he said.
"Import of rubber, especially crumb rubber, is picking up as global prices are ruling at Rs 200/kg and adding a Rs 20 per kg import duty to it, the commodity is still cheaper than the domestic rates," Valy noted.
Global natural rubber prices (at Bangkok) are down in the range Rs 228-230 per kg, the Rubber Board data said.
Presently, 1,000 tonnes of rubber is imported daily.