MARKET COMMENTARY
Natural rubber is seen stretching losses in the major overseas market on Wednesday. Declining for the second consecutive day, TOCOM rubber futures shed more than 2.5 per cent, SHFE rubber futures lost nearly two per cent probably on profit booking. Mixed economic data from China may have influenced the sentiments as well.
The commodity in the local market traded with a weak bias on Tuesday. Quotes for RSS4 in the spot market ticked down and NMCE rubber futures declined 1.5 per cent. Weak cues from the major overseas market and subdued demand put downwards pressure on prices.
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According to the Association of Natural Rubber Producing Countries, natural rubber supply will fall short of demand from 2020 onwards.
Crude rubber inventories at Japanese ports stood at 8,034 tonnes as of Sept. 30, up 2.9 percent from the last inventory date, data from the Rubber Trade Association of Japan showed.
India’s natural rubber production rose by 21 per cent to 58,000 tonnes in August, while imports shot up by 27% to 47,540 tonnes, according to Rubber Board data.
According to Rubber Board, natural rubber production in India is seen rising since May this year with July and August showing a rise of 10 and 20 per cent respectively compared to last year.
Vietnam exported an estimated 858,000 tonnes of rubber in the first nine months of 2016, up 15.3 percent from the same period last year, the government said.
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