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Malaysia rubber ends steady, seen consolidating

KUALA LUMPUR: Malaysian rubber prices closed steady on Friday but trade was quiet as buyers stayed out of the market.

Traders said they expected prices to consolidate after rising continuously since January.

"Prices may come off slightly after the strong gains, and buyers are expecting this. So they will wait, hoping to buy at lower levels," said a trader.

The Malaysian Rubber Board quoted March RSS1 buyers at 291 Malaysian cents (76 US cents) a kg, up one cent from Thursday. For the week, it was up 10.5 cents.

Tyre-grade closed at 286.50 cents (75 cents) a kg, unchanged from on Thursday but down one cent from a week ago.

Traders said the recent surge in prices was partly caused by producers holding back stocks in anticipation of tight supplies during the wintering season which has started in Malaysia. "I think sellers would react first by bringing down their offer prices because buyers are well-stocked and can afford to wait," the trader said.

Wintering, during which rubber trees shed leaves and latex flow slows, usually lasts for around couple of months.-Reuters