MARKET COMMENTARY
Natural rubber prices are under pressure in the major overseas market. TOCOM rubber futures are seen falling after the last day’s rise while SHFE rubber futures continued its downtrend on Thursday. Decline in crude oil and other industrial commodities weighed on as market attention shifted towards the upcoming release of key economic indicators from the US and China.
Natural rubber in the local market ruled firm on Wednesday, with quotes for RSS4 in the physical market edging up to fresh five month high on thin arrivals. However, activities were subdued probably due to financial year ending.
MARKET NEWS
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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Geofin Comtrade
