LONDON—Despite price gains in some Asian markets during July, most indicators suggested that natural rubber prices were declining further from the brink of a mild recovery.
Key to the market were trends on the Shanghai Futures Exchange, with prices for the most heavily traded future RU1609 falling by 5.6 percent to $1,627 per ton between July 1-29.
Confirming the negative trend, another heavily traded future RU1701 was by down by 12.5 percent, to $1,834 per ton over the same four-week trading period.
A more positive trend was seen in back month RSS3 prices on Tokyo's Tocom exchange, where a mini-recovery saw prices rise from $149 per kilogram on July 6 to approach the heady heights of almost $156 per kilogram at the end of July.
This bounce, though, was short-lived, as prices for the Japanese exchange's reference rubber material fell back to $149 per kilogram in early August.
There was a more positive trend in Bangkok where prices for RSS1 and RSS3 each increased by around 4 percent to $178.85 per 100 kilogram and $182.95 per 100 kilogram respectively from July 1-29.
Again the gains on the Thai market were wiped out in early August, with RSS1 and RSS3 down respectively to $176.70 per 100 kilograms and $173.40 per 100 kilograms by Aug 5.
In Kuala Lumpur, meanwhile, prices for SMR 20 fell by almost 2 percent to $127.30 per 100 kilograms between July 1-29, recovering slightly to $130.70 by Aug 5.
The latest declines have put the pact by the three main rubber producing countries to revive natural rubber prices by limiting supply under increasing scrutiny.
Under the deal, Thailand, Indonesia, and Malaysia agreed to cut rubber exports by 615 kilotons over the six months to August.
However, some analysts have reported that Thai rubber exports to China had increased significantly in recent weeks, while Chinese imports of product from Malaysia and Indonesia had fallen—though only slightly.