MARKET COMMENTARY
- On Wednesday, TOCOM rubber futures took a breather after the recent plunge while on SHFE, the commodity continued to decline. The active January rubber futures on TOCOM inched up from the six and a half month low hit last day probably on bargain hunting and rise in crude oil prices. However, the broad underlying market sentiments seemed to be feeble on weak fundamentals. In the Indian markets, meanwhile, RSS4 extended its downtrend in the physical market on Tuesday tracking moves in the overseas market. RSS4 grade was quoted further lower, around Rs.118 a kg, in sluggish trades. However, a bounce back was witnessed on NMCE following an initial plunge.
MARKET NEWS
- US auto sales were stronger than anticipated in July with sales rising 5.3 per cent to 1.51 million vehicles.
- Weekly data from SHFE showed rubber inventories in the warehouses monitored by it rising three per cent to 182714 tonnes
- 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.
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