Chinese buyers purchased up to 2,500 tonnes of rubber from Indonesia to replenish stocks but turned their backs on Thai grades after tight supplies lifted prices, dealers said on Wednesday.
China, the world's largest consumer, was estimated to have bought more than 10,000 tonnes of rubber from Thailand, Indonesia and Malaysia since returning to the market last week after the Lunar New Year holidays, they said. Indonesia's SIR20 was traded late on Tuesday at 59.00 to 60.75 US cents per pound ($1.30 to $1.34) for March shipments. There were also deals for Malaysia's SMR20 but sellers gave no details on prices. "There has been a lot of buying by Chinese dealers, not so much by the consumers," said a dealer in Singapore.
"To me that means the dealers will buy, then wait for the market to go up or the cargo to land and then sell. So once they are 'full', we may see a fall off in the nearby interest."
China was short of stocks after many buyers defaulted on shipments late last year as rubber prices plunged from a 56-year high above $3 a kg hit in July, said dealers. Dealers said there were no signs China would slow down soon after official data showed imports of natural rubber dived 65 percent to 60,000 tonnes in January compared with the same month last year.The January imports tumbled 45 percent from the previous month, the General Administration of Customs said.
"China is still in the market and struck some deals last night," said a dealer in Indonesia's main producing island of Sumatra. "I would say the amount is between 1,500 and 2,500 tonnes," he said.
At around $1.30 a kg, SIR20 was cheaper than Malaysia's SMR20 which was offered at $1.40. Thailand's RSS3 and STR20 grades were offered at $1.52 and $1.42 a kg respectively, up from $1.51 and $1.41 last week, and dealers said buying from China had fizzled out.