MARKET COMMENTARY
As the week progresses, indecisive moves are being witnessed in natural rubber prices in the international market. A mixed trend is being witnessed on Wednesday. TOCOM rubber futures inched up while SHFE rubber futures ticked down in thin ranges as investors probably chose to stay on the sidelines with key economic data set to be out. Firmer crude oil prices and positive GDP data from China lend support. In the Indian market, meanwhile, NMCE rubber futures declined, falling over one per cent while in the physical market RSS4 traded flat with a negative bias on lacklusture demand.
MARKET NEWS
According to preliminary trade data released by the China’s General Administration of Customs rubber imports by the country rose 17.9 per cent to 330000 tonnes in June.
Malaysia’s natural rubber (NR) production in May 2015 dropped 11.3% to 38,923 tonnes compared with the same period last year, according to the country’s Statistics Department.
According to the Rubber Trade Association of Japan natural rubber imports by the nation rose 17.2 per cent on YoY basis to 62256 metric tonnes.
Based on the Kerala government’s price stabilization project, Kerala State Cooperative Rubber Marketing Federation has decided to procure 5000 tonnes of rubber in the first phase.
Kerala government has issued orders, framing the guidelines for the implementation of a ‘Rubber Production Incentive Scheme’, which guarantees a price of Rs 150 for a kilogram of rubber.
Kerala State Chief Minister informed the Assembly that government would ensure that small-scale rubber growers with two hectares of land or less will get an assured price of Rs.150 a kg.A total of Rs 300 crore has been earmarked in the state budget for ensuring fair price for rubber which will be utilized for this new scheme. Rubber Board has clarified that Kerala and Kanyakumari dist. Of Tamil Nadu would continue to receive subsidy for planting and replanting rubber. Malaysia plans to use 10 per cent of its rubber supply in roads from 2016 as it looks to eat into excess supplies and shore up rubber prices.
Raising concern over the fall in rubber production for the third consecutive year, the tyre and rubber industries have sought urgent government intervention to stem the slide in domestic production.
Source: Geofin Comtrade
