MARKET COMMENTARY
As this week’s trading session culminates, natural rubber is seen inching up in the major overseas market. SHFE rubber futures bounced up after declining for four days in a row, rising more than one percent while TOCOM traded rather steady. Expansion in manufacturing activity in China improved the market sentiments. In the meantime, the commodity in the local market traded rather steady in lackluster trades. On Thursday, RSS4 in the physical stayed firm near its five month high while indecisive moves were witnessed on NMCE.
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
