By Rahul Dhuri
MUMBAI – Rubber contracts on the Indian Commodity Exchange ended higher today due to the ongoing supply crunch amid rising demand from tyre makers, traders said. The most-active July contract ended at 15,010 rupees per 100 kg, up 0.6% from Wednesday.
Expectation of a fall in rubber imports are also seen supporting the prices, said Kerala-based trader Biju Thomas.
Natural rubber imports in 2019-20 (Apr-Mar) are seen falling 14% to 500,000 tn, according to Rubber Board data.
However, a fall in prices of natural rubber in key spot markets of Kerala and weakness in benchmark rubber contracts on the Tokyo Commodity Exchange capped the gains on ICEX, analysts said.
Prices of natural rubber in Kerala’s key spot markets extended their fall due to lukewarm demand from stockists after a recent surge in prices, said Raju Varghese, the owner of Kottayam-based Polachirayil Traders.
Today, in Kochi and Kottayam, the widely traded RSS-4 variety was sold at 150-152 rupees per kg, down 1 rupee from the previous close, traders said.
However, Rubber Board data showed that in Kochi and Kottayam, the RSS-4 variety was quoted unchanged at 152.00 rupees per kg, in both the markets.
On the global front, rubber contracts on TOCOM ended down today, tracking weakness in benchmark contracts on the Shanghai Futures Exchange. The most active November natural rubber contract on the Japanese bourse ended at 199.5 yen (128.65 rupees) per kg, down 0.5% from the previous close.
In Thailand, price of the RSS-3 variety rose 96 cents to $203.20 per 100 kg, according to Rubber Board data. However, in Malaysia, price of the SMR-20 variety fell $2.06 to $150.10 per 100 kg.
The following table shows today’s closing prices of rubber, in rupees per kg, as detailed by the Rubber Board, and the change in prices, in rupees, compared with the previous close:
In the coming days, rubber contracts on ICEX are expected to trade firm. However, sharp gains are likely to be capped, tracking spot markets in Kerala, traders said. Natural rubber prices in spot markets of Kerala are expected to fall due to tepid demand from stockists, they said. End
US$1 = 69.44 rupees
Edited by Subham Mitra