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Malaysia rubber closes mixed as demand slows

KUALA LUMPUR: Malaysian rubber prices closed mixed on Wednesday in continued quiet trading as consumers shunned the market.

Traders said buyers were well-stocked and reluctant to chase prices. Tight supply had prompted producers to either offer higher prices or hold back stocks.

"There are still no buyers in the market. Some had earlier tried to buy at lower prices but were not successful. They are not in a hurry to buy, so they'll wait," said a trader.

The Malaysian Rubber Board quoted March RSS1 buyers at 288 Malaysian cents (76 US cents) a kg, up two cents from on Tuesday.

Tyre-grade ended unchanged, also at 288 cents a kg.

Traders said sellers were unlikely to lower their offers as the wintering season has started in Malaysia.

Wintering, during which rubber trees shed leaves and latex flow slows, usually lasts for a couple of months or more.

Reports of a decline in the Thai government rubber stockpile were also seen as a supportive factor.

Thai government spokesman Akrapol Sorasuchart said late on Tuesday that the rubber stockpile stood at about 60,000 tonnes, down from about 260,000 tonnes last on September. He said most of the stockpile had been liquidated in several tranches since October.-Reuters