MARKET COMMENTARY
Natural rubber in the overseas market is seen rising as this week’s session culminates. On Friday, TOCOM rubber futures gained about five per cent earlier today while SHFE rubber futures rose three per cent as sentiments improved and crude oil prices jumped. In the meantime, the commodity in the local market was seen rising as well. Even as activities thinned out in the physical market owing to Onam holidays in Kerala, NMCE rubber futures bounced up on short covering with the near month September rubber futures gaining over 2.5 per cent.
MARKET NEWS
According to International Rubber Consortium, global natural rubber production is expected to decline further in 2015 following the prolonged and strong El Nino.
Central govt. says there is no immediate plan to permit foreign direct investment in the country’s coffee and rubber plantation sector.
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.
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.
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.
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