On Wednesday, natural rubber in the major overseas market is seen rather steady. TOCOM rubber futures edged up and the most active January rubber futures stayed in the vicinity of the three week high hit the other day. Overnight gains in crude oil prices coupled with softer yen buoyed prices. SHFE rubber futures ticked up as well.
The commodity, however, stayed under pressure in the local market. On Tuesday, RSS4 grade rubber in the spot as well as futures market slipped on improved supply outlook amidst lacklusture demand. Weak cues from the major overseas natural rubber market weighed on the sentiments as well.
MARKET NEWS
India’s natural rubber production rose 6.4 percent in June from a year ago to 50,000 tonnes as lower rainfall in the top producing southern state of Kerala allowed farmers to raise tapping, the Rubber Board said in a statement.The country’s imports in the month fell 4 percent to 37,336 tonnes, while consumption jumped 7.4 percent to 87,000 tonnes.
Rubber imports (both natural and synthetic) by China in the month of July rose 4.2 per cent to 430000 tonnes.
The Association of Natural Rubber Producing Countries expects the demand for natural rubber to stay weak in 2016 as well as 2017. According to the association natural rubber production among its member countries for the first seven months of 2016 stood at 5.899 million tonnes, up by 0.2 per cent on YoY basis, while consumption rose 4.4 per cent to 4.7 million tonnes.
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Geofin Comtrade
