Asian rubber was influenced by concerns about the Chinese property market but prices on some exchanges were supported by bargain hunting in the low-production season.
Tocom rubber futures settled mostly higher after selling on Monday as the low-production season–which has just started–is supportive–encouraging short covering and bargain hunting even with a decline in Shanghai rubber.
The previous benchmark July Tocom rubber contract settled Y1.6 higher at Y218.8/kg while the new benchmark August rubber opened at Y219.5/kg and settled at Y219.1/kg.
“The decline in natural rubber supply from [Thailand, Indonesia and Malaysia] will be more severe in the coming months,” International Rubber Consortium Chief Executive Yium Tavarolit said.
August Tocom rubber closed Y0.6 higher at Y219.7/kg in the night session which is considered part of the next trading day.
Benchmark May natural rubber on the Shanghai Futures Exchange settled 2.0% lower.
Physical rubber prices were mostly lower because of generally weak sentiment on Chinese demand fears.
Despite lower prices, many traders were not in a hurry to sell because of the low-production season.
“Current raw-material supply is not even enough to cover my long-term contracts so I’ve nothing to sell on the spot market,” a Bangkok-based trader at a large exporter said.
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