Thai rubber body says rubber up as supply tightens

London - Thai-based International Rubber Consortium (IRCO) reported on rubber trading in the week of 19-23 Jan saying the markets showed a slight rise in the period.

“Rubber futures and physical rubber markets in Asia rose marginally… on the back of market concerns on supply tightness in rubber producing countries, which were heading into the dry wintering season in the coming month,” said the IRCO report.

In addition to the supply decline, a $760-million Thai government scheme to shore up domestic prices as well as the European Central Bank’s decision on quantitative easing “outweighed the domination of the yen and crude oil movement on rubber futures in the region”, it added.

“The rubber market in the region is expected to remain subdued, and market fundamentals are likely to dominate market sentiment in the coming week,” concluded the report.