MARKET COMMENTARY
Natural rubber is seen inched down after the previous day’s jump in the major overseas market. On Tuesday, the benchmark September rubber futures dipped, weighed down by strengthening yen and fall in crude oil prices. SHFE rubber futures declined as well. In the local market, the commodity edged higher to hit its highest level in about five month. On Monday, RSS4 in the physical market was quoted around Rs.114 a kg on improving demand from both tyre as well as non-tyre sector amidst thinning supplies and positive moves seen in the major overseas market. NMCE rubber futures were seen rising as well.
MARKET NEWS
Indonesia government will buy 500,000 tn of natural rubber produced across the country to help support prices.
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China’s imports of natural rubber fell 21.35 percent in February to 139,376 tonnes.
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.
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