A rise in world rubber prices on supply concerns and talk of Chinese presence in the market prompted overseas buyers to clinch deals and moved Indonesian tyre-grade SIR20 prices higher, traders said on Wednesday.
Tyre makers and Singapore dealers had swamped the market overnight, they said, adding China's presence may have prompted buying before prices climb higher.
Indonesian tyre-grade SIR20 was traded between 56.25 and 57 cents/lb, or $1.25 and $1.27 per kg, for May contracts, FOB Belawan/Palembang/Surabaya, against 56 cents/lb on Friday.
June shipments were traded at 57 cents/lb.
"TOCOM and SICOM closed higher yesterday and we heard China has entered the market, prompting buyers to do some deals before prices move higher," one Padang trader said.
Traders said Singapore dealers dominated in light trade late on Tuesday, buying mostly may and June. Tyre makers Goodyear and Bridgestone also purchased SIR20, with Goodyear the main buyer.
Asked how much China purchased, the Padang trader said:
"You can't tell. They do deals quietly, and not until shipments load, then you know how much is being sent there."
Tokyo and Singapore rubber futures inched higher on Tuesday on light short covering and position squaring ahead of this week's expiry of the prompt futures contract.
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