Thailand, Indonesia and Malaysia, the top three rubber producers have agreed to cut down their exports by 300,000 tonnes with the hope of increasing its prices but TOCOM dropped the futures by 5% since it hit the 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 in Singapore.
“Major consumers are in no rush as I assume their consumption is down. China has been buying but that doesn’t seem to be making a dent in the Thai rubber market, which is long.”
The prices of rubber are influenced by TOCOM, which affects the global demand situation.