MARKET COMMENTARY
Natural rubber stayed under pressure in the major overseas market. On Thursday, TOCOM and SHFE rubber futures are seen stretching losses, with the latter shedding more than one per cent. The most active March rubber futures, following an initial rise on overnight gains in crude oil, resumed declining and hit a one week low.
On Wednesday, natural rubber in the local market declined. Weak cues from the major overseas natural rubber market along with subdued demand dragged down RSS4 grade rubber in the physical as well as futures market.
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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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