MARKET COMMENTARY
Overnight sharp fall in crude oil prices and persisting worries over China kept natural rubber under pressure. SHFE rubber futures on Thursday is seen inching down while TOCOM rubber futures pared initial losses
Bearishness prevailed in local natural rubber market as weak demand continued to suppress prices. On Wednesday, quotes for RSS4 in the spot market hit a fresh six and a half year low while NMCE rubber futures plunged nearly two percent.
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Government of India has restricted imports of natural rubber only through ports of Chennai and Nhava Sheva, the Directorate General of Foreign Trade said in a notice.
Japan’s crude rubber stocks totaled 9,973 metric tons as of Jan. 10, down 2.5% from 10,229 tons as of Dec. 31, data from the Rubber Trade Association of Japan showed Thursday.
Thai government spokesman Maj. Gen. Sunsern Kaewkumnerd said on Tuesday that the cabinet has approved allocation of 5.47 billion baht ($151 million) from the state budget to buy up to 100,000 metric tons of rubber directly from local farmers for 45 baht ($1.24) a kilogram.
China economy grew 6.8 percent in the Q4 of 2015, its weakest since 2009, putting the full year growth by 6.9 per cent; it’s slowest in 25-years. Industrial production and retail sales climbed 5.9 and 11.1 per cent respectively in December.
Thai government has ordered eight ministries to buy rubber to help struggling farmers.
China imported 500,000 tons of natural and synthetic rubber in November 2015, representing an increase of 51.5 per cent compared to the same month of 2014, according to statistics released by the General Administration of Customs of China.
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