Asian physical rubber prices rose on Monday, tracking rises of futures contract prices on the Tokyo Commodity Exchange to 16-month highs. There were several inquiries from Tyremakers, but not many deals were done due to high prices and trade was not very active, traders said. Persistent rain in Thailand and Malaysia, key producers, was likely to keep physical prices firm this week, they said.
Trade in Indonesia, another leading producer, was quite busy as cheaper prices attracted Tyremakers, including some from China, the world's biggest buyer, to SIR20.
But Indonesian traders could not commit big lots because rain had cut supply, they said. Rains disrupted tapping in Median, Indonesia's key rubber growing area in northern Sumatra, while Plumbing, another key producing area in the south, was still in the wintering season when rubber trees produce less latex, an Indonesian trader said. "We could sell only 100 tonnes per day, compared to around 200-300 tonnes we used to sell as we have less supply," he said.
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