MARKET COMMENTARY
Sentiments seem to be feeble in the global natural rubber markets. On Tuesday, TOCOM rubber futures declined for the third consecutive day tracking overnight fall in SHFE rubber futures, strengthening yen and weaker oil prices. The most active January rubber futures slid, falling more than two per cent to hit two week low.
In the Indian market, however, natural rubber market seems to be rather firm. Quotes for RSS4 grade rubber in the physical market lingered around Rs.144 a kg on Monday as supplies continues to be short. Similar moves are being seen on NMCE rubber futures as well though declines being witnessed in the major overseas natural rubber market weighed on.
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India’s Natural rubber production in 2016-17 (Apr-Mar) is seen rising 16% on year to 654,000 tn according to the Rubber Board.
Exporter members of rubber association GAPKINDO will not sell natural rubber by using long-term contracts anymore, as the method tends to be used by global traders to control the price of the commodity, said Edy Irwansyah, secretary of the North Sumatra branch of the organization.
Crude rubber inventories at Japanese ports stood at 10,402 tonnes as of June. 30, down 10.2 percent from the last inventory date, data from the Rubber Trade Association of Japan showed.
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.
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