MARKET COMMENTARY
TOCOM rubber futures are seen retreating as the week ends. On Friday, the most active January rubber futures on TOCOM declined about two per cent, snapping past two days of gains as attention shifted towards the Bank of Japan’s monetary policy outcome. Decline in oil prices and sharp rise in Japanese yen against the US dollar put downwards pressure on prices. SHFE rubber futures followed the suit, shedding more than 1.5 per cent.
The commodity in the Indian markets traded with a positive bias on Thursday. Quotes for RSS4 in the physical market inched up to Rs.144 a kg, while on NMCE, it ended nearly one per cent up. Amidst short supply, upticks in natural rubber prices in the major overseas market lend firm support.
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Crude rubber inventories at Japanese ports stood at 9,617 tonnes as of July. 10, down 7.5 percent from the last inventory date, data from the Rubber Trade Association of Japan showed.
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.
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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