Asian physical rubber prices were steady on Monday, supported by a solid futures market, but sentiment remained weighed down by worries about lower demand from tyre makers. News on Friday that at least three major tyre makers had cancelled long-term contracts to buy Indonesian rubber to reflect lower auto demand continued to dampen the market.
"The news is still depressing the market," said a trader in Singapore. "There are delays or cancellations of contracts from major suppliers and buyers. The impact to the market is quite significant," the traders said. Besides gains in Tokyo rubber futures, Chinese buying, although in small lots across different grades, was helping to put a floor to the market, the trader said. Supplies provided support.
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