Asian physical rubber prices were quoted slightly higher on Thursday as futures contract prices on the Tokyo Commodity Exchange surged to an 18-month high. Traders said, however, that thin dealings capped gains in the physical rubber market. European and US users were off on year-end holidays, leaving only Chinese and Japanese buyers shopping around, they said.
"Tyremakers have to build up stocks to cover demand in February and March when prices will be higher than these because rubber trees will produce less latex due to the wintering-dry season," a Thai trader said. Thailand's dry season usually starts by the end of February and runs through to the end of April.
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