Indonesian rubber prices were firm on Wednesday despite ample domestic supplies because of healthy consumer demand and tight supplies in top rubber producer Thailand.
Rubber supplies in Indonesia have been improving as wintering ended in North Sumatra, one of Indonesia's key growing belts, but strong demand from major buyers such as the United States, Japan and China has kept prices from falling in the past week.
During wintering, rubber trees shed their leaves and latex output slows. "The market is bullish. Buyers are showing up every day, although most of them are dealers. Direct consumers like tyre-makers are still waiting for prices to come down a bit," said a trader in Jakarta.
Deals were noted for Indonesia's tyre-grade SIR20 at 103.25 US cents per pound ($2.28 a kg), free on board at Begawan port for July shipment on Wednesday. SIR20 was traded at between 100.75 and 102 US cents per pound in late May.
Comments
Comments are closed.