MARKET COMMENTARY
Indecisive moves are being witnessed in natural rubber in the major international market as this week’s trading session culminates. Even as the broad trend stays bearish, range bound moves are being witnessed in rubber futures on TOCOM and SHFE as investors probably grew wary of the recent move by China to devalue its currency. In the meantime, on Thursday a mixed trend was witnessed in the Indian natural rubber market. While RSS4 continued to trade weak in the physical market, NMCE rubber futures were up, probably on short covering following the slump towards its lowest level since December 2014.
MARKET NEWS
Parliamentary Standing Committee on Commerce has submitted report on Rubber Industry in India and has made a number of observations and recommendations for the development of rubber sector.
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Auto sales in China fell 7.1 per cent on YoY basis in July to 1.5 million, the biggest decline since February 2013 according to China Association of Automobile Manufacturers.
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 LokSabha 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.
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