MARKET COMMENTARY
Sentiments seems to be muddled in natural rubber market after the recent spike. TOCOM rubber futures edged down for the fourth consecutive day on Friday while SHFE rubber futures as seen swinging between positive and negative turfs as this week’s session culminates. Rise in crude oil prices after the overnight declines may probably lend support. In the local markets on Thursday, the commodity traded rather steady. RSS4 grade rubber spot prices hovered near Rs.104 a kg while the most active April rubber futures on NMCE ended tad up.
MARKET NEWS
Indian’s natural rubber production and imports falls sharply in February by 10 and 12 percent respectively according to the Rubber Board. The country imported 27280 tonnes and production stood at 38000 tonnes. Consumption declined as well by 1.0 per cent to 82500 tonnes.
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The government is in the process of launching an insurance scheme for the plantation sector, including rubber, which would cover price fluctuations and other risks, Commerce and Industry Ministry Additional Secretary Rajani Ranjan Rashmi said.
Indonesia, the world’s second biggest rubber exporter, plans to cut its natural rubber shipments by 96,000 tn in March-May and by 144,000 tn in June-August, Moenardji Soedargo, chairman of Indonesia rubber association or Gapkindo said.
China imported 4.72 million tons of natural and syndicated rubber in 2015, a year-over-year increase of 15.3 per cent. The country imported natural and syndicated rubber worth 48.6 billion yuan (approx US$7.44 billion) during the same period, down 11.3 per cent from a year earlier. The country imported 590,000 tons of natural and syndicated rubber in December of 2015, up 18 per cent month on month. The country imported natural and syndicated rubber worth 5.25 billion yuan (approx US$803 million) during the same period, up 12.8 per cent compared to the previous month.
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