MARKET COMMENTARY
Mixed trend is being witnessed in the natural rubber in the major overseas market on Wednesday. TOCOM rubber futures are seen swinging between positive and negative turfs, while SHFE rubber futures inched up. The most active January rubber futures on TOCOM inched down, paring initial gains probably on tall Japanese yen. However, a bounce in crude oil prices following the last day’s slide and rise in SHFE rubber futures lend firm support. In the Indian market, natural rubber continues to trade in thin ranges. On Tuesday, quotes for RSS4 in the spot market stayed firm near Rs.144 a kg in subdued trades, supported by scanty arrivals to the market.
MARKET NEWS
China imported 2.69 million tons of natural and synthetic rubber worth 24.7 billion yuan (approx US$3.72 billion) during the first half of this year, a year-over-year increase of 38.4 per cent and 16.9 per cent, respectively. The country imported 410,000 tons of natural and synthetic rubber worth 4.18 billion yuan (approx US$630 million) in June of this year, up 24.2 per cent and 15.3 per cent from a year earlier, respectively.
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 EdyIrwansyah, 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 EdyIrwansyah, secretary of North Sumatra’s branch of the Indonesian rubber association GAPKINDO.
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Geofin Comtrade
