MARKET COMMENTARY
TOCOM rubber futures pared initial gains while SHFE rubber futures are seen stretching losses on Wednesday. Strengthening yen along with fall in SHFE rubber futures may have probably weighed on TOCOM rubber futures though a rebound in crude oil prices lend support.
In the Indian market on Tuesday, natural rubber traded rather firm. RSS4 grade rubber ruled firm near the five month high in the spot market buoyed by limited supplies to the market. NMCE rubber futures gained as well.
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Indonesia government will buy 500,000 tn of natural rubber produced across the country to help support prices.
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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