MARKET COMMENTARY
TOCOM and SHFE rubber futures are seen steadying after the recent surge. On Wednesday, the benchmark October rubber futures on TOCOM hit a nine month high before trimming gains while SHFE rubber futures ticked down as market attention shifted towards the key central bank meetings.
On Tuesday, natural rubber in the local market traded firm. In the spot market, RSS4 grade rubber was held near its highest level in more than 21-months buoyed by limited arrivals and on positive cues from the major overseas market. However, on NMCE, the commodity traded down.
MARKET NEWS
Sinochem International Corporation plans to acquire Halcyon Agri Corporation Limited, one of the top five natural rubber companies in the world. If the deal goes well, Sinochem International Corporation will become the world’s largest natural rubber supplier.
India’s natural rubber production fell to its lowest level in about two decades in 2015-16 to 563000 tonnes, a 13 per cent fall from the previous year’s production of 645000 tonnes. Consumption declined as well, by three per cent on YoY basis to 987540 tonnes.
A Ajithkumar, secretary to the Kerala Governor, has been named as the new chair of the Rubber Board.
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 an ‘above normal’ monsoon rains for this year.
Japan’s weather bureau said that 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.
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Geofin Comtrade
