Asian rubber prices edge higher

Fears of tighter supplies are expected to keep Asian rubber prices firm but traders said on Thursday that consumers were also winding down purchases until prices cooled.
Asian rubber prices have edged higher in the past week, boosted by persistent rain in key producer Thailand that has prompted supply concerns.
"Most buyers are sidelined until prices fall. I think only those with immediate demand to cover will buy now," said one Indonesian trader on Sumatra Island.
The price of natural field latex in Thailand, the raw material for Thai 60 percent concentrated latex, rose to 60 baht a kg on Thursday from 59.5 baht a day.
On Thursday, offers to sell Thailand's STR20 grade for shipment in December and January edged higher to $1.62 a kg from $1.61. It has risen around 2.5 percent since on Monday.
Thai RSS3 rubber sheet was also quoted at $1.62 a kg. No bids were reported, said dealers. The price of benchmark unsmoked rubber sheet grade 3, or USS3, the raw material for export grade rubber, was steady at 60 baht a kg.
"The general feeling is that people want to see where Tokyo is heading as the spot contract expired today," said one trader in the southern part of Thailand.
The benchmark April 2006 contract on the Tokyo Commodity Exchange (TOCOM) rose 5.3 yen per kg to 203.0 yen in afternoon trade. Other contracts rose between 2.1 and 5.0 yen.
Traders noted that further gains in rubber prices were limited by falls in crude oil that eased due to better than expected US inventory fuel stocks.
The rubber market watches the oil market's movements as higher oil prices could stimulate a shift in demand to natural rubber from synthetic rubber, which is a petrochemical product.
In Indonesia, SIR20 was sold at around $1.59 a kg free on board Begawan in Sumatra for January shipment to tyre maker Bridgestone Corp, while January shipment was traded at $1.60 a kg.
Raw material prices in Indonesia were steady at $1.43 a kg. "US buyers are absent today due to the public holiday there, and we see weakening interest from Singapore dealers today because of higher prices," said the trader in Sumatra.
Offers for Malaysia's tyre-grade SMR20 rose to $1.63 a kg for January delivery from $1.615 on Wednesday. "There have been no bids so far, buyers are in wait-and-see mode," said one Singapore dealer.