MARKET COMMENTARY
As this week’s session culminates, natural rubber in the international market is seen continuing downtrend. TOCOM rubber futures reversed previous session advances and declined more than one per cent while SHFE rubber futures stretched losses tracking overnight declines in crude oil and other industrial metals amidst weak fundamentals. In the local market meanwhile, on Thursday, RSS4 was held in narrow ranges though the broad trend stayed weak. In the physical market, it was quoted around Rs.120 a kg while on NMCE it culminated the session in red in lackluster trades.
MARKET NEWS
Reuters reports that India’s natural rubber imports in July dropped nearly 15 per cent from a year earlier to 36828 tonnes.
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.
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