MARKET COMMENTARY
⊳Amidst limited supplies, advances seen in natural rubber prices in the international market improves the sentiments in the local natural rubber market on Tuesday. Quotes for RSS4 grade rubber ticked up while NMCE rubber futures ended the session on a positive note. However, lingering worries over demand from the tyre sector continued to weigh, which kept a cap on gains. Meanwhile, on Wednesday, natural rubber in the international market declined, reversing previous day’s advances. TOCOM rubber futures dropped more than one per cent tracking overnight declines in crude oil prices.
MARKET NEWS
⊳Finance Ministry considering a proposal from the Department of Commerce to raise the import duty on natural rubber as imports of product has risen sharply.
⊳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.
TECHNICAL COMMENTRY
RUBBER Mar NMCE
Range bound moves inside 12600-12300 continues and a break out from the either the sides could suggest fresh directions.
Source: Geofin Comtrade
