MARKET COMMENTARY
Sentiments seem to be rather shaky in major overseas natural rubber market on Thursday. TOCOM rubber futures slipped to hits its weakest level in three week tracking losses in SHFE rubber futures, which shed nearly two percent. Strengthening Japanese yen weighed on the sentiments as well. However, a bounce-up in crude oil lend lower level support.
Range bound moves continued in the Indian natural rubber market. On Wednesday, RSS4 in the spot market stayed firm near Rs.144 a kg in subdued trades.
MARKET NEWS
The National Mutli-Commodity Exchange said it will impose 20% additional cash margin on August rubber contract on both buy and sell positions from August 8th.
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 Edy Irwansyah, secretary of the North Sumatra branch of the organization.
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