Thai rubber prices are likely to stay steady in the next few days, as supply remains tight in the dry wintering, traders said on Wednesday.
Thai RSS3 rubber sheet was offered steady on Wednesday at $1.35/kg FOB for May shipment. Thai STR20 was at 1.32/kg FOB.
Thai rubber prices have risen in recent months as the world's top producer and exporter of rubber is in the dry February to April wintering season, when leaves fall and latex output declines.
Rain helps nourish trees and boost latex output. Prolonged dry heat can dry the trees out, cutting latex output.
"The trade has been thin. Overseas buyers have been waiting to buy when the price is lower," said one trader.
Overseas buyers were keen on deals below $1.20/kg FOB for RSS3 rubber sheet for May shipment, traders said.
Thai 60 percent concentrated latex was offered steady at $940/tonne FOB in bulk. It was offered unchanged at $1,000/tonne FOB in drums.
The price of Thai unsmoked rubber sheet grade 3 (USS3), the raw material for export-grade rubber sheet, was steady on Wednesday at 48 baht/kg ($1.22/tonne).
Prices of field latex, a raw material for Thai 60-percent concentrated latex, were quoted at 47 baht/kg.
"The price of raw material is expected to stay steady in the next few days as many exporters will continue buying raw material to fulfil their March export commitments," said one exporter.
Indonesia's SIR20 was offered steady on Wednesday at 1.28/kg FOB. Malaysia's SMR20 was steady at $1.30.