MARKET COMMENTARY
While the broad trend stayed weak, TOCOM rubber futures are seen extending gains on Thursday. The benchmark January rubber futures gained more than one per cent probably tracking weakness in yen. Japanese yen has hit a two month low against the US dollar. In the meantime, SHFE rubber futures declined.
In the Indian markets on Wednesday, a bounce back was seen in the spot market. Quotes for RSS4 inched up to Rs.120 a kg probably tracking gains in the overseas market. However, NMCE rubber futures stayed on the negative turf.
MARKET NEWS
Kerala State government decided to earmark Rs.300 crore for rubber procurement during the current season apart from deciding to bring latex under the procurement scheme and relaxing certain norms for farmers wanting to join the scheme.
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
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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