MARKET COMMENTARY
TOCOM rubber futures slumped more than three per cent, as the exchange reopens after consecutive holidays today, on persisting worries over China economy. Concerns over demand intensified following weak factory activity data. In the meantime, SHFE rubber futures were seen trimming initial gains in thin trades.
On Wednesday, natural rubber in the local market dipped in lackluster trades. In the physical market, quotes for RSS4 declined to Rs.112 a kg on jaded demand and weak cues from the overseas market.
MARKET NEWS
Kerala government has modified some terms of subsidy scheme for rubber farmers. The government dropped Aadhaar as mandatory requirement for registration while extending the scheme to latex as well from next month. Farmers will receive the difference between Rs.142 and the price of latex as fixed by the Rubber Board.
The Association of Natural Rubber Producing Countries Assembly has discussed several options to strengthen rubber prices, including the creation of a common trading platform, according to Sheela Thomas, ANRPC’s Secretary-General.
China’s January-August rubber imports down 4.4 per cent to 1.66 million tonnes.
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.
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.
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