MARKET COMMENTARY
Natural rubber is trading on a greener turf in the major overseas market on Tuesday. TOCOM rubber futures stretched gains and inched higher probably on bargain buying. SHFE rubber futures rose as well though prices are being held in thin ranges. Firmer China equities improved the sentiments. In the meantime, on Monday, natural rubber in the local market stayed weak. In the physical market, quotes for RSS4 declined to Rs.118 a kg. Demand continued to be meager, pressurizing prices to move south. Downtrend was witnessed in NMCE rubber futures as well.
MARKET NEWS
Natural rubber production in India falls 3.7 per cent on YoY basis to 52000 tonnes according to the Rubber Board.
Director General of Foreign Trade Pravir Kumar said that existing inverted duty structure in rubber sector is a valid concern and is an issue need to be addressed as it impacts the production domestically and there by exports in any sector.
Union Commerce Minister Nirmala Sitaraman said in Lok Sabha that the government was not considering any proposal to restrict import of rubber or rubber products.
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.
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.
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