Indonesia sold tyre grade to dealers in Singapore on Monday, probably for shipment to main consumer China, while tight supplies kept sentiment bullish in Southeast Asia. SIR20 was sold at 88.75 US cents per pound ($1.96 a kg) on a free-on-board basis (FOB) at Palembang in South Sumatra for June shipment. July SIR20 was traded at 89.00 cents free-on-board at Belawan in North Sumatra. There were no details on quantity.
Offers stood at 90.25 cents FOB Belawan and at 89.00 FOB Palembang for June shipment.
"Supply is very tight in Belawan area, which has forced some dealers to source rubber from other areas. But I think if people place bids at 89.25 cents today, some shippers may be willing to sell," said a dealer in Jakarta.
"The wintering season will be over at the end of May," said the dealer, referring to a period when trees shed leaves and output falls.
Dealers said China was an active buyer during a week-long holiday last week, purchasing rubber for June shipment mainly from Indonesia.
China is the world's largest natural rubber consumer and its key suppliers are Thailand, Indonesia and Malaysia.
Tight supplies in the three main producers helped the physical market resist downward pressure from Tokyo rubber futures, which ended mostly lower because of a firm yen against the dollar.
The most active six-month TOCOM rubber contract October closed 0.2 yen a kg lower at 259.8 yen a kg ($2.29) after touching a low of 257.2 yen.
The dollar fell nearly 1 percent and hit an eight-month low against the yen after a top US Treasury official suggested that Japanese policy-makers should refrain from intervening verbally on currencies.
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