MARKET COMMENTARY
Following the slide down towards 10 month lows, TOCOM rubber futures took a brief pause on Thursday. The benchmark January rubber futures inched up, probably on short covering, though the underlying trend stayed bearish on China demand woes. SHFE rubber futures ticked up as well.
In the Indian market, on Wednesday, trend was mixed with NMCE rubber futures ending in green while quotes in the physical market dipping further on persisting poor demand.
MARKET NEWS
The central government not to hike import duty or ban imports of natural rubber, according to government official, despite repeated demands made by the rubber-growing states of Kerala and Karnataka.
Crude rubber inventories at Japanese ports stood at 13689tonnes as of Aug 10, down 1.8 per cent from that on July 31, data from the Rubber Trade Association of Japan showed.
PTI reports that government is considering allowing foreign direct investment in rubber and coffee plantation sectors.
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 NirmalaSitaraman 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.
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