In the week gone by, bearishness prevailed in the local natural rubber market. In the spot market, RSS4 slipped to its weakest level since early March and steep declines were witnessed on the NMCE before showing a mild recovery towards the close of the week. Nose-diving natural rubber prices in other Asian physical market and on TOCOM amidst muted tyre sector demand drove prices lower. According to the Rubber Board, natural rubber consumption by the tyre sector that constitutes more than 60 per cent of the total use hardly grew in the FY 2012-13. Meanwhile, tapping activity in the plantations is yet to gather pace after the lean production phase due to unfavourable weather. Rise in temperature with only sporadic summer rains is to have an impact on the yield. In Thailand, tapping resumed after ‘wintering’ and supplies are seen rising in the coming months.
According to Rubber Board production and consumption of NR in 2013-14 are projected at 960,000 tonnes and 10, 20,000 tonnes respectively with a deficit of 60,000 tonnes.
Immature rubber plants of two-four years are drying up in India’s north-eastern region owing to prolonged dry weather.
Rubber stockpiles at Qingdao, China’s largest hub for the tropical commodity, rose to a record 366,900 tons by April 15 according to the Qingdao International Rubber Exchange Market.
Thailand, the world’s biggest rubber producer and exporter, is planning to offer loans to exporters to buy the commodity in a bid to shore up falling prices.
Thailand and Malaysia will collaborate in setting up rubber industry zones on both sides of the common border in order to create jobs and income for citizens of both nations.
Thailand targets to lower shipments of rubber by 10% through end of May to help support prices, says Thai deputy farm minister Yuttapong Charasathien.
Rubber inventories in the warehouses monitored by SHFE rose 1.5 per cent 119149 tonnes the previous week. Meanwhile, crude rubber stockpiles held at Japanese warehouses fell 0.8 percent to 15,668 metric tons on April 10, according to data from the Rubber Trade Association of Japan.
RUBBER May NMCE
Broad Trend: Seen weak.
Source: Geojit Comtrade
Download this report (full content – PDF file) bellow: