NR Consumers May Have No Say In Physical NR Prices

There was no report on IRCo’s Daily Composite Price (DCP) on 17 November as some physical rubber markets in the region closed. However, IRCo’s technical indicators and market fundamental factors in general were still in positive territory during 17 - 18 November.

On the rubber futures front, Tokyo and Shanghai rubber futures tracked the falls in other commodity and stock markets on 17 November as investors were still concerned about Irish debts and a rise in Chinese inflation. A day after Tokyo rubber futures rebounded on the back of support mainly from a rebound in oil prices and a weakening Japanese yen, but the benchmark price for the most active month on Shanghai rubber futures settled slightly lower on the same day as investors feared that China’s central bank would increase interest rates and Beijing would control prices of necessities and commodities, including rubber fures in the country.

DESCRIPTION	17 NOV	18 NOV	CHANGE	% CHANGE	UNIT
IRCo's DCP	-	427.93	-	-	US cents/kg
TOCOM/RSS3 *
- Nov. 10	348.40	358.00	9.60	2.76%	Yen/kg
- Apr. 11	353.50	362.10	8.60	2.43%	Yen/kg
SHFE/RSS3 **	32,825	32,780	-45	-0.14%	Yuan/ton
AFET/RSS3
- Dec. 10	124.75	127.00	2.25	1.80%	THB/kg
- Jun 11	124.30	129.00	4.70	3.78%	THB/kg
RRIT ***
- RSS3	130.25	130.25	0.00	0.00%	THB/kg
- STR20	128.20	128.20	0.00	0.00%	THB/kg
SIR20 ****	-	428.00	-	-	US cents/kg
SMR20 ****	-	430.00	-	-	US cents/kg

Source: IRCo

Note: * Day session

** The highest daily trading volume was May. 2011

*** RRIT means Rubber Research Institute of Thailand

**** Offer, f.o.b., Asian physical rubber prices for Dec./Jan. delivery, Dow Jones

- The markets closed on a public holiday

Turning back to the physical front during the same period, physical rubber prices still settled mostly higher with strong demand from traders and tire makers, particularly China, the leading rubber consumer and importer. In the meantime, despite flooding in some parts of southern Thailand is receding, but most of natural rubber (NR) planted areas were fully damaged that will reduce NR supply in the first quarter of next year, which is a dry wintering season. NR consumers may have no say in physical NR prices when that time comes.

(Source: http://www.irco.biz/BlogMoreDetial.php?id=2712&ShowContent=news)