Asian rubber prices steady

Asian rubber prices were steady on Thursday, but few physical deals were done as many players stayed on the sidelines waiting to buy at lower prices, dealers said.
The benchmark August TOCOM rubber contract on the Tokyo Commodity Exchange, the global trend setter for rubber, was down a slight 0.2 yen per kg at 245.3 yen.
Thai benchmark RSS3 rubber sheet for May shipment was unchanged at $2.04 a kg, free on board.
"It looks like the market is supported at this level," a dealer said.
Offers for tyre-grade Standard Thai Rubber, or STR20 block, for May shipment were steady at $1.94 and offers for Thai 60-percent concentrated latex were at $1,550 a tonne in drums.
Offers for Indonesia's tyre-grade SIR20 were at 85 US cents per pound ($1.87 a kg) for May shipment. Offers for Malaysia's tyre-grade SMR20 were steady at $1.93 a kg free on board for May shipment.
Several overseas buyers, including Chinese have been seeking to buy at lower prices.
"Chinese tyre makers have been in the market, bidding to buy Malaysian block rubber at $1.91 a kg, but we have refused to sell at a discount," a dealer in Singapore said.
"We don't want to lower our offers. One or two cents away is a lot of money."
China is the world's largest consumer of natural rubber. Its key suppliers are Thailand, Indonesia and Malaysia.
Malaysian exporters said they were selling Malaysian block rubber only for shipment through to May.
"Now we can sell Malaysian block rubber for May shipment, but if buyers want to buy for June shipment, we can sell but at small premiums," a Malaysian dealer said.
Malaysia's tyre-grade SMR20 was offered at $1.93-1/2 a kg free on board for June shipment.
A few deals were done overnight with Malaysian SMR20 sold at $1.92 a kg, free on board, for May shipment and Indonesian SIR20 sold at 85 US cents per pound ($1.87 a kg) to dealers for June-July shipment.
"UK buyers are buying now and then. But American buyers are still monitoring the market," another Singapore dealer said. Less supply is expected in Malaysia in coming days as the country is in the wintering dry season.
"But supply in Indonesia is O.K. We have got enough of raw materials from the Indonesian side," said another dealer in Singapore who trades both Malaysian and Indonesian rubber.
Supply remains tight in Thailand, the world's top rubber exporter which is also in the wintering season. Thailand, Indonesia and Malaysia account about 70 percent of the world's natural rubber production. The wintering season, when temperatures soar and output falls by an average 30 percent, normally starts in eastern Thailand at the end of January and runs through February.