By Rahul Dhuri
MUMBAI – Rubber contracts ended lower on the Indian Commodity Exchange today, tracking key markets in Kerala, traders said. The most-active October contract ended at 12,732 rupees per 100 kg, down 2% from Friday.
Natural rubber prices slipped in key markets of Kerala due to sluggish demand from tyre makers amid expectation of a further rise in imports, traders said. India’s automobile industry has been in a downturn over the past 12 months, largely because of subdued demand.
Imports of natural rubber rose 27.4% on month to 50,940 tn in July, data from the Directorate General of Commercial Intelligence and Statistics showed.
The widely-traded RSS-4 variety was sold at 134-136 rupees per kg in Kochi, down 1 rupee from the previous close, traders said. Rubber Board data showed that in Kottayam and Kochi, the RSS-4 variety was sold at 136.00 rupees per kg, down 1 rupee from the previous level.
Expectation of higher production this season also weighed on contracts, said Joy Alencherry, owner of Kottayam-based Maria Rubber Links.
Output of the commodity in India in 2019-20 (Apr-Mar) is seen at 750,000 tn, against 651,000 tn the previous year, the head of Karvy Comtrade said.
Lack of fresh cues from benchmark rubber contracts on the Tokyo Commodity Exchange also weighed on the domestic bourse. Prices of rubber on TOCOM were unavailable as the exchange is closed on account of a public holiday. The bourse will resume trade on Tuesday, analysts said.
On Friday, the most active February natural rubber contract on the Japanese bourse settled at 170.6 yen (around 113.4 rupees) per kg, up 1 yen.
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, prices of natural rubber are likely to reel from pressure due to continued sluggish demand from tyre makers amid expectation of a rise in domestic output, analysts said. End
US$1 = 71.59 rupees
Edited by Subham Mitra