MARKET COMMENTARY
On Wednesday, natural rubber in the major overseas market is trading on the positive note. TOCOM rubber futures are up more than 1.5 percent tracking gains in crude oil and other industrial commodities. However, persisting worries over China capped advances. Economic indicators from China, the top consumer of natural rubber, turned out to be a lackluster which fanned worries on economic growth momentum. Weakness in the major overseas natural rubber market coupled with poor demand kept the commodity under pressure in the local market. On Tuesday, RSS4 in the physical market was quoted around Rs.104 a kg. NMCE rubber futures declined as well.
MARKET NEWS
Thailand on Tuesday approved $139 million in additional loans to help rubber farmers in the Southeast Asian country hit by weak global prices of the commodity. Vietnam to join International Rubber Tripartite Council as a strategic partner. Following the meeting of International Rubber Tripartite Council, officials have pledged to establish a new regional rubber trading platform that could be up and running by June 2016. Also, it has asked upon to implement a scheme in 2016 that would limit rubber supplied to market.
Crude rubber inventories at Japanese ports stood at 9742 tonnes as of Nov.20, down 8.1 percent from the last inventory date (Nov.10), data from the Rubber Trade Association of Japan showed. China agrees to buy 200000 tonnes of natural rubber from Thailand according to government officials. According to the Association of Natural Rubber Producing Countries, natural rubber output among its member countries could fall for the second consecutive year in 2015 as farmers curtail tapping in this peak production period owing to low prices. India government imposed anti-dumping duty on import of certain grades of carbon black from China and Russia for a period of five years.
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Geofin Comtrade
