MARKET COMMENTARY
Natural rubber prices are seen rising in the major overseas natural rubber market as this week’s trading session kicks off. TOCOM rubber futures jumped over two per cent halting last four days of consecutive declines. Bargain buying along with weaker yen and firm crude oil prices may have probably lifted the sentiments. Similar moves are being witnessed on SHFE rubber futures as well.
In the local market last week, natural rubber traded rather firm. RSS4 in the physical market was quoted near its highest level since mid-November last year on limited supplies to the market and improving sentiments in the major overseas market amidst the ongoing lean production phase.
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Vietnam is soon likely to join the International Rubber Consortium Ltd (IRCo), a rubber cartel that ensures fair and remunerative income for small holders of its member nations, an industry body official said.
Despite the government’s measures to stabilise the rubber market, it may take a couple of years to correct the oversupply and the resultant lower prices and ensure markets offer farmers sustainable prices, said Sheela Thomas, secretary general of the Association of Natural Rubber Producing Countries.
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.
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.
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Geofin Comtrade
