MARKET COMMENTARY
Positive moves are being witnessed in natural rubber as the week’s session commences. TOCOM rubber futures gained over one per cent on Monday and SHFE rubber futures, which reopened today after national holiday to commemorate end of World War II, inched up one per cent as well. However, the broad underlying sentiments stayed feeble and the commodity is still in the vicinity of the six year lows. In the meantime, the scenario in the local natural rubber continued to be bearish though some bargain hunting was witnessed as prices fell towards Rs.110 a kg, which probably restricted sharp declines in prices.
MARKET NEWS
Malaysia to raise Rubber Production Incentive to RM5.10 from RM4.60 per kg for SMR 20 FOB according to the country’s Minister of Plantation Industries and Commodity.
Weekly data from SHFE showed rubber inventories in the warehouses monitored by exchanges increased by 1.3 per cent to 193666 tonnes.
Salmiah Ahmed has been appointed as the new CEO of International Rubber Consortium, the operational arm of the International Tripartite Rubber Council.
All India Rubber Industries Association has called for formation of an exclusive export promotion council for rubber products.
India’s Minister for Steel and Mines has expressed concerns over problems faced by the local rubber and steel industry due to “dumping” by countries that it has free trade agreements with and said that the matter is in consultation with ministries of finance and commerce as well as the prime minister to reconsider these agreements and rising further anti-dumping duties.
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.
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