Tire makers from China purchased several rubber cargoes this week following a drop in inventories in Qing­dao Port, while some Indonesian exporters were reluctant to offer the commodity as prices held near five-year lows, dealers said on Thursday.

However, the slight pickup in demand from top consumer China was not really taken as a sign of recovery in a market burdened by oversupply and confusion surrounding the sale of 100,000 tons of Thai rubber from state stockpiles.

Thai STR20 for November was sold to Chinese buyers at $1.55 to $1.60 per kilogram (kg) including freight in a series of overnight deals, within sight of last week's traded price of $1.57 CIF. Another Thai grade, RSS3, was traded at $1.65 to $1.70 per kg on a free-on-board basis.

"Stocks in the bonded warehouses in Qingdao have dropped to a new low this year, so we are seeing more consumers coming into the market," said a dealer in Singapore.

"They have requested an early shipment because the price is attractive. We have barely shipped rubber to China in the last six months," said the dealer, adding he had sold Malaysian SMR20 at $1.635 to China.

Reuters