"Yesterday, it was heavy rain until this. Champion is also flooded," said one Thai dealer in the southern province of Phang Nag, referring to another nearby province where rubber is also grown. Dealers said with the tight supply, price are expected to remain firm. "Actually, now we are quite tight for the year 2005, what we can sell just a small quantity," said one dealer.
Some buyers including China, were in the market these but prices were unchanged from Monday. Some deals were done overnight for Malaysia's tyre-grade rubber, SMR20, which was sold at $1.66 per kg to Chinese buyers for shipment in December.
Indonesia's tyre-grade, SIR20, was sold to a Chinese tyre maker at $1.61. "Some local dealers in Singapore were bidding to buy Malaysia's block rubber this at $1.62-1/2, but that is out of line," said one dealer in Singapore.
"I explained to them we traded at $1.66, so I just ignored their bid."
On Tuesday, Malaysia's tyre-grade SMR20 was steady at $1.66 per kg, free on board, for December shipment, while Indonesian SIR20 was at $1.62.
In Thailand, tyre-grade Standard Thai Rubber, or STR20 block, for December shipment was at $1.70 per kg, free on board. But, overseas buyers were biding at $1.67-1.68.
Thailand's tyre-grade STR20 for shipment next January to March 2006 shipment was steady at $1.67 on Tuesday from Friday. Thailand was closed on Monday marking Chulalongkorn day.
American dealers were bidding to buy Malaysia's tyre-grade block rubber at $1.65-1/2 overnight for shipment in the second half of November. "We will wait until tonight whether we can sell or not."
Prices on the Tokyo Commodity Exchange, the global trend-setter for rubber, fell on Tuesday after gaining the previous day. The benchmark March 2006 rubber contract in Tokyo ended 1.1 yen per kg lower at 196.2 yen.