MARKET COMMENTARY
On Wednesday, TOCOM rubber futures are seen pausing following the recent rise. Following an initial rise to hit three week high earlier today on rise in crude oil prices and falling inventories, the benchmark March rubber futures are seen paring gains. In the meantime, natural rubber in the local market traded rather steady on Tuesday. Quotes for RSS4 grade rubber in the physical market continued to hover around Rs.113 a kg. Range bound moves were seen on futures platform as well. Advances in the overseas natural rubber market coupled with limited arrivals lend firm support.
MARKET NEWS
Crude rubber inventories at Japanese ports stood at 12,184 tonnes as of Sept. 20, down 2.8 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Thursday.
Bridgestone Corporation announced that it successfully built passenger tires with 100 per cent of its natural rubber-containing components derived from guayule, a desert shrub that grows in arid region.
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 October. 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.
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.
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