Market and product

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.