MARKET COMMENTARY
Natural rubber stayed under pressure in the local as well as overseas market. TOCOM rubber futures approached towards the six year low hit earlier this month on lingering concerns on China demand. SHFE rubber futures stretched losses as well.
In the Indian market, natural rubber stayed on the bear turf, in the vicinity of the six year lows. RSS4 in the physical market slipped to Rs.10a kg in lackluster trades on Tuesday. Low demand and bearishness in the overseas market weighed heavily on prices despite fall in production.
MARKET NEWS
Indonesia, Malaysia, Thailand and Vietnam have agreed to harmonise their rubber standards with effect from Jan 1 according to Rusdan Dalimunthe, executive director at the Indonesia Rubber Association or GAPKINDO.
Crude rubber inventories at Japanese ports stood at 11,070 tonnes as of Oct. 31, down 3.6 percent from the last inventory date, data from the Rubber Trade Association of Japan showed
India’s natural rubber output in October declined 10.9 per cent on YoY basis to 49000 tonnes according to the Rubber Board. Imports declined as well by 11.6 per cent to 37691 tonnes while consumption increased 4.9 per cent during the same period.
Rubber inventories in the warehoused monitored by SHFE rose 0.8 per cent to 228612 tonnes according to weekly data from the exchange.
Member countries of the Association of Natural Producing Countries (ANRPC) are eyeing for the formulation of a security fund called the “Rubber Stabilization Fund” is seen to address financial issues among small farmers in the rubber industry and cope with the vitality of global rubber pricing.
[embeddoc url=”https://drive.google.com/file/d/0BzrsaGiMYhEkaG8wd2xLUHVndFU/preview” viewer=”drive”]
Geofin Comtrade
