MARKET COMMENTARY
Natural rubber stayed under pressure in the major overseas market. TOCOM and SHFE rubber futures are seen stretching losses on Friday and are poised to end the week in red. The most active March rubber futures on TOCOM lost over one per cent to hit one-and-a-half week low. In the meantime, natural rubber in the local market traded steady with a negative bias on Thursday. Weak cues from the major overseas natural rubber market along with jaded demand from the tyre sector maintained downwards pressure on prices.
MARKET NEWS
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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Geofin Comtrade
