MARKET COMMENTARY
Lingering worries over demand continue to drag down natural rubber. TOCOM rubber futures slipped to 10- month low on Wednesday as investors grew wary over demand from the top natural rubber consumer China and on broad based decline crude oil and other industrial commodities. SHFE rubber futures shed nearly one per cent. Renewed fears over further devaluation of Chinese yuan against the US dollar weighed on as well. In the local market too, the commodity maintained its bearish trend. On Tuesday, RSS4 in the physical as well as futures market declined with the grade being quoted at its lowest level since December last year.
MARKET NEWS
PTI reports that government is considering allowing foreign direct investment in rubber and coffee plantation sectors.
Crude rubber inventories at Japanese ports stood at 16241 tonnes as of July 31, up 18.3 per cent from that on July 20, data from the Rubber Trade Association of Japan showed.
Weekly data released by SHFE showed 1.1 per cent rise in rubber inventories in the warehouses monitored by the exchange. Rubber stocks stood at 189161 tonnes.
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.
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.
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