MARKET COMMENTARY
Sentiments seems to be mixed in the overseas natural rubber market on Tuesday. Rubber futures on TOCOM exchange inched higher while SHFE rubber futures are seen stretching previous day’s losses. The benchmark August rubber futures on TOCOM, which reopened today after an extended weekend holiday, was hovering near the two week high buoyed by a weaker yen. Overnight gains in crude oil may have lent support as well. In the local market, the sentiments stayed sanguine. On Monday, RSS4 grade hit a fresh four month high, propped up by thin supplies in this ongoing lean production phase in the major natural rubber growing areas amidst improving demand.
MARKET NEWS
China’s imports of natural rubber fell 21.35 percent in February to 139,376 tonnes.
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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 37000 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.
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