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Helixtap

Helixtap collects, processes and distributes proprietary data, analyses and forecasts for the rubber, latex and automotive markets

Head of Content, Data & Research, Helixtap

Arusha Das

Head of Content, Data & Research

Commodities

<ul><li>Low long-term contract volume booking for Indonesian rubber due to higher offers led to a supply glut compelling the Indo producers to match buyers’ expectations reversing the premium for spot prices with Thai rubber, sources said to Helixtap.</li><li>  The Indonesian producers raised their levels “too high and for too long” some months back, said a market source, adding offers for long-term contract (LTC) volumes at a much higher premium resulted in lower volume booking.</li><li>  According to market sources, traditionally, Indonesian producers book around 40%-50% of their monthly production volume for long-term contracts, which is reduced to around 20% this year.</li></ul>

Low long-term contract volume booking for Indonesian rubber due to higher offers led to a supply glut compelling the Indo producers to match buyers’ expectations reversing the premium for spot prices with Thai rubber, sources said to Helixtap.  The Indonesian producers raised their levels “too high and for too long” some months back, said a market source, adding offers for long-term contract (LTC) volumes at a much higher premium resulted in lower volume booking.  According to market sources, traditionally, Indonesian producers book around 40%-50% of their monthly production volume for long-term contracts, which is reduced to around 20% this year.

High Premium Prices Weigh On LTC Volume For Indo Rubber

SGX Rubber Future TSR20

High Premium Prices Weigh On LTC Volume For Indo Rubber