Limited supplies coupled with gains in crude oil and other industrial commodities, natural rubber inched up in the Indian market on Wednesday. With supplies remaining tight in anticipation of higher prices in coming days, RSS4 was marginally up in the physical market. Positive moves in the futures market too aided the sentiments. The benchmark February rubber futures in NMCE rose around one per cent yesterday following two consecutive sessions of decline. Latex (drc 60%) prices were seen rising too after remaining mostly steady for the last few days.
In the international market, the trendsetting TOCOM and SHFE remained shut for the New Year holidays and will be reopening only on Friday. In AFET, RSS3 grade rubber is seen steadying after the previous session advances, awaiting fresh cues for further directional moves.
According to Thai Rubber Association, rubber exports from the country is expected to remain on rise in 2013, with growth estimated about 3.0-5.0 per cent boosted by higher demand from emerging markets including China, India and Brazil.
A meeting was held between Prof. K.V. Thomas, Minister of State (Independent Charge) for Consumer Affairs, Food and Public Distribution and Anand Sharma, Minister for Commerce, Industry and Textiles, Friday in New Delhi to review fall in domestic price of natural rubber in the month of December, 2012.
Rubber output in Indonesia, the largest grower after Thailand, may decline for the first time in four years in 2013 as the country limits output and shipments in coordination with other producers to support a rally.
The rubber industry has sought lower import duty on raw materials such as butyl rubber and hi-tech synthetic rubbers, while it wants the duty on finished products to be kept high. A pre-Budget plea by the AIRIA, has asked for reduction in customs duty on natural rubber (NR) from the current 20 per cent or Rs 20 a kg to 7.5 per cent or Rs 10 a kg, whichever is lower.
RUBBER Feb NMCE
Prices are currently placed near the congestion range of 16960- 17070 and require clearing convincingly the same to continue the prevailing buying sentiments. Inability to break and sustain the same could call for a turn lower possibly to 16700/16500 or more.
Source: Geojit Comtrade
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