MARKET COMMENTARY
Natural rubber continues to trade on a positive trajectory. On Wednesday, natural rubber in the major overseas market elongated gains bolstered by firming crude oil prices and on concerns over output from the top natural rubber producing countries. Expectation of improved demand from China buoyed the sentiments as well. TOCOM rubber futures hit a fresh eight month high while SHFE rubber futures rose more than 3.5 per cent.
In the local market too, natural rubber stayed buoyant. In the physical market, RSS4 grade rubber was quoted around Rs.130 a kg, its highest level since late-June, Apart from cues from the overseas market, thin supplies lend firm support.
MARKET NEWS
China’s imports of rubber (natural and synthetic rubber) jumped 74.2 per cent to 540000 tonnes in March compared to a month earlier.
India Meteorological Department, in its first forecast for 2016 South-West Monsoons, have predicted a ‘above normal’ monsoon rains for this year.
Japan’s weather bureau said on Monday there was a high possibility that a La Nina weather pattern would emerge in summer after El Nino ends.
India’s natural rubber imports from Thailand during calendar year 2015 rose over 10% on year to 121,700 tn, according to data from the Thailand Natural Rubber Association.
Indonesia government will buy 500,000 tn of natural rubber produced across the country to help support prices.
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.
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Geofin Comtrade
