MARKET COMMENTARY
On Tuesday, natural rubber in the overseas market slumped over three per cent. Plunge in China and Japanese equities amidst lingering worries over demand from the top consumer China dragged down natural rubber prices on TOCOM as well as SHFE exchange to its weakest level in more than two weeks. In the meantime, the commodity traded rather flat in the local market on Monday. While the broad trend stayed weak, RSS4 is probably on a consolidation mode. Jaded demand and weak cues from the overseas market weighed on while limited supplies to the market lend lower level support.
MARKET NEWS
Plantation workers in Kerala including tea, rubber, coffee and cardamom have started indefinite strike demanding wage hike.
Rubber Board has backed a proposal to permit 100 per cent FDI in the plantation sector.
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.
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