Asian physical rubber prices rose on Wednesday, despite a drop on the Tokyo Commodity Exchange, as rains in producing countries raised supply concerns. Trading was active, as buyers feared prices would go higher, traders said.
"They will rush to buy when prices stop falling as they realise prices won't fall again and they will have to pay more," a trader said. Users bought Thai RSS3 at $2.21-2.22 per kg while China bought at $2.17-2.18 for August shipment, traders said.
Physical rubber prices were expected to remain firm over the next week as rains hit Thailand, the world's biggest rubber producer and also Malaysia, the third biggest, disrupted tapping. The Thai Meteorological Department said more heavy rain was expected next week, including the south, the country's main rubber growing area.