Tyremakers and major rubber consumers such asChinaandIndiahave snapped up a few cargoes for nearby shipment after prices slipped further despite a move by top producers to curb exports, dealers said on Wednesday.
Thailand,IndonesiaandMalaysiaagreed in August to cut down rubber trees and trim exports by 300,000 tonnes from October to lift prices hit by a faltering global economy, but benchmarkTokyofutures have dropped more than 5 percent since hitting a peak this month.
"The export quota system is having almost zero effect on the market, as there is still enough spot rubber to keep the market under pressure," said a dealer inSingapore.
"Major consumers are in no rush as I assume their consumption is down.Chinahas been buying but that doesn't seem to be making a dent in the Thai rubber market, which is long."
Prices have been influenced by Tokyo futures, which in turn tend to react as much to the global demand situation as export policies in producing countries, said dealers.
Thai STR20 grade changed hands in a series of overnight deals from $3.02 to $3.13 akg for November and December shipment, down from the up to $3.09 traded last week.
Preliminary data showed top consumerChinaimported 210,000 tonnes of natural rubber in September, down 12.5 percent from the same month last year. January-September imports, however, were up 9.6 percent to 1.58 million tonnes year-on-year.
"STR20 buyers are trading houses and alsoChina. We've seen small purchases of RSS3 from consumers and a little bit byIndiaas well," said a dealer inThailand, referring to another Thai grade.
"There are occasional rains, but I think the weather is getting better. There's no problem with supply of raw material." RSS3 was traded at $3.20 to $3.22 akg, down from $3.29 last week, although there were also reports of deals at around $3.30.
Indonesia's SIR20 was sold to unspecified buyers at 134 US cents a pound ($2.95 akg) for November shipment, down from up to 137.00 cents trade last week.
Bridgestone Corp, the world's largest tyre maker, showed buying interest at 133.75 cents for December shipment, but there were no reports of deals, said dealers.
Malaysian SMR20 was traded at $3.03 akg, versus $3.10 last week.
