Tyre-grade SIR20 for December delivery was sold on Thursday at 69.75 US cents per pound ($1.54 a kg) free on board Plumbing in South Sumatra to US buyers as well as Michelin, the world's largest tyre maker, dealers said.
Japan's largest tyre maker, Bridgestone Corp, purchased December SIR20 at 70 US cents free on board plumbing late on Wednesday, and at 70.25 cents free on board Begawan in North Sumatra for January shipment, they said.
Indonesian rubber was offered as high as 72 cents last week. "China hasn't shown much interest lately. Some people say it's waiting for the price to fall further but I don't think the price should keep coming down like this," said one Jakarta dealer.
Rubber prices have been under pressure in recent days due to the prospect of more supplies in main producer Thailand. Dealers expect the flow of latex to continue rising as heavy rains subside in growing areas and allow tapping to resume.
Some dealers said China could be a slow buyer in November and December because local importers were still waiting for changes in import tariffs for rubber. The China Rubber Industry Association has asked Beijing to cut import tariffs for natural rubber to 10 percent from 20 percent because of low domestic stocks and high international prices.
Some dealers said a decision could be made early next year. "Singapore dealers haven't been buying much for China. I saw a lot of shipments back in October but the activity have slowed down as December approaches," said one dealer in Padding, the provincial capital of West Sumatra.
Prices weakened in Thailand and Malaysia but their rubber was still more expensive than the Indonesian variety. Tyre-grade Standard Thai Rubber, or STR20 block, eased to $1.57 a kg from $1.58. Malaysia tyre-grade SMR20 fell to $1.55 a kg from $1.56 a kg for December delivery.