MARKET COMMENTARY
⊳In lacklusture trades, natural rubber ended on a negative note in the Indian market. NMCE rubber futures, resumed to decline, and ended about 0.5 per cent lower while in the physical market RSS4 grade rubber was quoted lower at Rs.123 a kg. Poor demand from the tyre sector and high imports continued to ponder on the overall market sentiments even as market is in the midst of lean production phase. In the overseas market too, in subdued trades, TOCOM rubber futures inched up following the last day’s decline while SHFE rubber futures declined. Persisting worries over demand from the top consumer China weighed on overall market sentiments amidst low crude oil prices.
MARKET NEWS
⊳ A major fire destroyed over 30,000 rubber trees, among other horticulture plants, in Ralan area of Wokha district in Nagaland, a report by the Nagaland Post
⊳Crude rubber inventories in the Japanese ports stood at 11904 tonnes as of March 10, down 3.0 per cent from the last date of inventory, (February 28) according to Rubber Trade Association of Japan.
⊳In an attempt to tide over the prevailing crisis in the rubber sector, the Rubber Board, in co-operation with Rubber Producers Societies (RPS), self help groups, and other voluntary organisations will organise an awareness campaign to propagate the message of sustainable rubber cultivation in the heartlands of rubber.
⊳Southeast Asian countries expect to develop a rubber-trading floor for regional rubber-producing countries to actively fix export rubber prices on the world market, Vietnamese and Thai officials announced during talks.
⊳Kerala Budget allocates Rs.300 crore Rubber Price Stabilisation Fund to purchase 20000 tonnes and fixes support price for rubber at Rs.150 a kg.
⊳Union government considering raising import duty on natural rubber to 25 per cent from the present 20 per cent according to the Commerce minister.
⊳Thailand and China are expected to sign a contract in May for China to purchase 2 million tonnes of Thai rice and 200,000 tonnes of rubber, following further discussions between the countries.
⊳India’s natural rubber output fell 13.5% on year to 50,000 tn in February from 57,800 tn a year ago, according to data from the Rubber Board. Consumption in February was at 82,500 tn, up from 79,375 tn a year ago while imports in rose around 42% on-year to 28,806 tn.
⊳The Singapore Exchange (SGX) is in preliminary talks to be part of a Southeast Asian rubber exchange that would bring together the top three producing nations.
TECHNICAL COMMENTRY
RUBBER Mar NMCE
Range-bound moves being witnessed currently may continue. However, slippage past 12300 ranges may intensify weakness. On the upper side, sustained trades over 12600 may see some short covering .
Source: Geofin Comtrade
