MARKET COMMENTARY
A bounce back is being witnessed in the international natural rubber market on Wednesday. TOCOM rubber futures inched up from the two week lows after three consecutive sessions of decline. However, the broad sentiments stayed weak and volatility in China market as well as weak crude oil prices weighed on overall market sentiments. In the Indian market meanwhile, natural rubber traded rather steady. In the physical market, RSS4 grade rubber was hovering near Rs.124 a kg while on NMCE, the grade culminated the session in green.
MARKET NEWS
Crude rubber inventories at the Japanese ports stood at 12663 tonnes as of July 10, down 2.9 per cnet from the last inventory date according to the Rubber Trade Association of Japan.
Vietnam is considering joining International Rubber Consortium Ltd.
Indonesia Trade Ministry introduced stricter regulation on tire imports in its bid to boost the domestic tire industry.
According to the Association of Natural Rubber Producing Countries natural rubber production fell by 0.7% (-35,000 MT) to 5.041 million MT in the first half of 2015 as compared to 5.076 million MT in the same period of 2014.
Thailand is set to lobby Vietnam to join the International Rubber Consortium Ltd (IRCo), a move that would help to stabilise rubber prices.
Vietnam’s rubber exports in the first half of this year rose 22 per cent on year on year basis to about 421300 tonnes according to the nation’s Customs department.
A contract for procurement of 80000 tonnes of Thai rubber us planned to be finalized by September 2015 according to Russian Minister of Industry.
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.
Source: Geofin Comtrade
