MARKET COMMENTARY
SHFE rubber futures are seen stretching previous day’s losses while TOCOM exchanged stayed closed on Friday on account of Showa Day. China’s crackdown on commodities market after the recent surge in industrial metals weighed on.
In tandem with the major overseas market, natural rubber in the local market retreated as well. On Thursday, NMCE rubber futures fell four per cent while in the physical market, RSS4 grade rubber was quoted lower, near Rs.142 a kg.
MARKET NEWS
Japan’s ‘Golden Week’ public holidays kick off on Friday, April 29, with markets also closed on May 3, 4 and 5.
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.
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Geofin Comtrade
