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Indonesia Rubber-Buyers in demand, wintering soon

JAKARTA: Buyers in Indonesia's rubber market were waiting on Monday for offer prices to soften before taking new positions.

"Buyers are sidelining because they think the current prices are still too high. Sentiment is bearish and hasn't changed since last on Friday," said one trader in Jakarta.

"Apart from wintering which will start soon, I don't see any fresh leads which can lift the sentiment," said the trader, adding wintering was expected to give a boost to prices. Traders said tyre-grade was flat at 33.25 US cents/lb for March and 33.50 for April fob Belawan. May rubber was also unchanged at 34.00 fob Medan, Palembang and Surabaya.

Traders said wintering, which will reduce the flow of latex from rubber trees, was expected to kick in in North Sumatra in March and in West Sumatra in April.

"The market is very dull. I haven't sold any new stuff since February 17. It seems buyers are in their wait-and-see mood again," said one trader in Padang, the provincial capital of West Sumatra.

The trader said he sold 120 tonnes of to the United States at 33.00 on February 17.-Reuters