Thai rubber prices have declined in quiet trade this week, but they are likely to rise in the next few days on expectations of tighter supplies, traders said on Wednesday.
Thai RSS3 rubber sheet was offered on Wednesday at $1.32 per kg on a free-on-board basis (FOB) for April shipment, down from Monday's $1.35-1.36 per kg.
Thai STR20 block rubber was at $1.30. "Supply has been tight and it is expected to tighten further for at least one more month as Thailand is still in the wintering season," said one trader.
Thailand is now in the dry wintering season (February-April), when leaves of rubber trees fall and latex output declines.
Rain helps nourish rubber trees and boost latex output. Prolonged dry heat can dry the trees out, cutting latex output.
Thailand, which exports two million tonnes of rubber a year, is the world's top producer and exporter of rubber.
Its key buyers are Japan, China and the United States. The trade has been generally quiet this week with only a few deals done, mostly with tyre makers, traders said.
"Chinese buyers have been patient. They said they would buy only when the price falls to around $1.25-1.27/kg FOB," said one.
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