MARKET COMMENTARY
Natural rubber in the major overseas market is seen trading in red on Thursday. TOCOM rubber futures inched lower for the second day today weighed down by strengthening yen. The benchmark September rubber futures on the exchange had rallied a seven-and –half month high last day before it fizzled-off to end lower. However, firm oil prices and concerns over production lend firm support.
In the local market, on Wednesday, natural rubber was seen stretching gains. Price for RSS4 grade rubber continued to rise in the physical market to hit its highest level since August last year. The sudden spurts in TOCOM rubber futures amidst tight local supplies lend support.
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Indonesia government will buy 500,000 tn of natural rubber produced across the country to help support 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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