MARKET COMMENTARY
Natural rubber in the major overseas is seen declining as this week trading commences. While the key trendsetting TOCOM exchange stayed closed on account of Vernal Equinox Day, SHFE rubber futures inched lower probably weighed down by retreat in crude oil prices.
Last week, in the Indian market, natural rubber was seen rising. In the physical market, RSS grade rubber inched up to its highest level since November last year bolstered by positive cues from the major overseas market amidst limited arrivals.
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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 RajaniRanjan 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 tnin June-August, Moenardji Soedargo, chairman of Indonesia rubber association or Gapkindo said.
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