MARKET COMMENTARY
Natural rubber jumped in the major overseas market on Wednesday. Stretching gains for the third consecutive session, TOCOM rubber futures rose over four per cent supported by a weaker yen and probably tracking gains in crude oil and other industrial commodities. SHFE rubber futures followed the suit, with the benchmark January rubber futures rising over three per cent.
Positive moves were witnessed in the Indian natural rubber market. While RSS4 in the physical market firmed near Rs.111 a kg, in the futures segment, it ended one per cent up probably tracking the rebound in the major overseas market amidst thin arrivals. Still, subdued demand restricted sharp gains.
MARKET NEWS
India’s natural rubber imports slumped 32 per cent on YoY basis to 33292 tonnes in August according to the Rubber Board. Consumption as well as production rose to 87500 and 55000 tonnes respectively during the same period.
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.
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