Asian physical rubber prices were quoted lower on Thursday a day after futures contracts tumbled nearly three percent on the Tokyo Commodity Exchange. But trade was active, with several deals done after prices fell, traders said.
Tyremakers bought Thai RSS3 at $2.65 per kg, free on board, while China, the world's biggest buyer, bought Indonesia SIR20 at $1.15 per lb for prompt shipment, they said. "TOCOM prices fell sharply yesterday, but I don't think physical prices would fall that sharply as demand remains strong while supply is likely to fall," a trader in Thailand's Hat Yai rubber centre.
Thailand, the number one producer, and Malaysia, the third biggest, are due to enter the wintering dry season, when rubber trees produce less latex, at the end of February. But the season may start in Thailand as rubber trees in some Andaman coastal areas are starting to shed their leaves, signalling that rubber output should fall soon.