MARKET COMMENTARY
⊳Lacklusture moves continues in the Indian market. On Monday, NMCE rubber futures were held in very narrowing amidst thin volumes and in the physical market, RSS4 grade rubber dipped to Rs.122 a kg. Gains seen in natural rubber prices in the major overseas market probably failed to improve the sentiments in the local market. In the mean time, TOCOM and SHFE rubber futures extended gains on Tuesday. Amidst decline in stock in Shanghai, firming crude oil lend support.
MARKET NEWS
⊳Natural rubber imports by China in February declined 7.3 per cent to 177204 tonnes on year on year basis.
⊳Weekly data from the SHFE showed inventories in the warehouses monitored by the exchanged dropped 4.1 per cent to 149116 tonnes.
⊳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.
⊳The 2015 World Rubber Summit jointly organized by International Rubber Study Group and SingEx Exhibitions to be held in Singapore on March 24 and 25.
TECHNICAL COMMENTRY
RUBBER Mar NMCE
In volume-less trades, range bound moves are being witnessed inside 12600-12300 levels. A breakout from either the sides are necessary for further directional moves.
Source: Geofin Comtrade
