SINGAPORE, July 25 (Reuters) – Thai and Indonesian rubber were traded at their weakest level in at least four years after a steep fall in price-setting Tokyo futures on concerns over a global economic slowdown, dealers said on Wednesday.
Thai RSS3 rubber, the benchmark physical price in Southeast Asia, changed hands overnight at $2.94 a kg for September shipment, while Indonesian SIR20 was sold at 126.75 and 127.75 cents a pound. RSS3 hit a lifetime high at $6.40 a kg in February 2011.
“Sentiment is gloomy, but there were small purchases by China last night,” said a dealer in Kuala Lumpur.
The most active rubber contract on the Tokyo Commodity Exchange, currently December 2012, bounced slightly on Wednesday but was still trading near a 2-1/2 year low hit in the previous session.
China imported 985,970 tonnes of rubber from January to June, up 12.8 percent from a year ago, but a decline in prices since March suggests that the world’s top consumer is buying the commodity on price dips.
(Reporting by Lewa Pardomuan; Editing by Richard Pullin)
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