MARKET COMMENTARY
US Federal Reserve leaving interest rates unchanged after voicing concerns over global economy, financial market mayhem in its latest policy meeting dampened the overall market sentiments. TOCOM rubber futures, on the course to post weekly losses, were down two per cent, erasing a part of the previous day’s advances. Moreover, upcoming consecutive holiday for TOCOM exchange from 21-23 September may weigh on the sentiment as well. Natural rubber in the Indian market ticked-up on Thursday in lacklusture trades. While, it was a holiday for futures market on account of Vinayaka Chathurthi, in the physical market the commodity traded firm tracking moves in the major overseas market and on thin arrivals.
MARKET NEWS
Vietnam exported 118,560 mt of natural rubber in August, edging up 5.75% year on year and rising 12.4% from July, data released Wednesday by Vietnam Customs showed.
Crude rubber inventories at Japanese ports stood at 13256 tonnes as of Aug 31, down 0.6 per cent from that on Aug 20, data from the Rubber Trade Association of Japan showed.
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.
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
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