MARKET COMMENTARY
Sentiments seem to be feeble in natural rubber in the international market as well as domestic market. On Tuesday, TOCOM rubber futures stretched previous day’s losses and hit one and a half week low tracking losses in crude oil prices. Weakness in SHFE rubber futures weighed on the sentiments as well.
On the domestic front on Monday, RSS4 grade rubber in the spot market lingered around two month low, while NMCE rubber futures tumbled more than two percent. Amidst weak cues from the overseas natural rubber market, improving local production and reports of higher imports maintained downwards pressure.
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
