Asian rubber: China returns to buy prompt cargo; Thai keen to sell

China bought some quantity of Thai rubber for December delivery to take advantage of falling prices, while offers from Indonesia were limited as a combination of dry and wet weather curbed supply, dealers said on Wednesday.
Thai RSS3 changed hands at $3.19 a kg for December delivery late on Tuesday, while January cargo was traded at a slightly higher price of $3.20, suggesting that nearby supply was ample after top consumer China wanted to delay several shipments earlier this month.
"Factories cannot just keep the rubber and do nothing after the delays. You have to sell back and roll your positions," said a dealer in Malaysia, who trades Thai rubber. "Some Chinese buyers are back in the market. Prompt cargo was traded at a discount to January contract." RSS3 prices have halved since hitting a lifetime high at $6.40 a kg in February on fears the debt crisis in Europe could hurt demand, and recently after China also told Thai sellers they wanted to renegotiate prices.
Another Thai grade, STR20, was traded overnight at $3.17 to $3.20 a tonne for December delivery. While many sellers in Thailand are still offering December cargo, two other main producers, Indonesia and Malaysia, only sell rubber for January delivery or onwards. The three countries are blacklisting buyers who have failed to honour their contracts after recent defaults caused panic selling in the physical market, the Thai Rubber Association said on Monday.