MARKET COMMENTARY
Natural rubber is seen trading on the greener turf in the international market on Wednesday. SHFE rubber futures gained about three per cent, while TOCOM rubber futures ticked up. The most active December rubber futures on TOCOM rose about a per cent though it is seen varying in tight ranges, probably awaiting fresh cues for further directional moves.
RSS4 continued trading firm in the local market. On Tuesday, quotes for the grades stayed near Rs.142 a kg. Thin arrivals lend firm support even as lacklusture demand weighed on, capping advances.
MARKET NEWS
The International Tripartite Rubber Council plans to hold a meeting on Aug 9 in Jakarta, Indonesia, to discuss the future of the rubber-export arrangement, which was made to help boost the commodity’s price according to Edy Irwansyah, secretary of North Sumatra’s branch of the Indonesian rubber association GAPKINDO
China’s tire production totaled 118.4 million units during the first four months of 2016, a rise of 5 per cent over the same period of 2015, according to data from the China Rubber Industry Association. In particular, production of radial tires and all-steel radial tires jumped 6.4 per cent and 3.1 per cent year on year to 108.4 million units and 26.2 million units, respectively. Output value of the tire industry was 51.7 billion yuan (approx. US$7.8 billion) during the reporting period, down 5.4 per cent year on year. Sales income of the industry also tumbled 5.3 per cent to 47.1 billion yuan (approx. US$7.1 billion).
China’s natural rubber imports stood at 193,226 tons in May, down 9 per cent month on month and up 38 per cent year on year, according to statistics from General Administration of Customs. For the first five months of the year, the importing volume amounted to 1,010,495 tons, up 3.8 per cent year on year.
According to the Rubber Board, natural rubber production in India declined 2.5 per cent on year-on-year basis in April to 39000 tonnes.
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Geofin Comtrade
