24.9 C
New York
Monday, August 15, 2022

Rubber bears may strengthen on: China stockpiles, weak domestic demand

Indian prices for RSS 4 grade have fallen to Rs 14800 per 100 kg while futures prices at National Multi Commodity Exchange (NMCE) has fallen further to Rs 13961 levels. China’s inventory levels and weak global demand .

KOTTAYAM, INDIA/SHANGHAI (Commodity Online): Rubber market continues to be in doldrums as global markets continue to be impacted by rise in China inventory.

India spot rubber prices for RSS grade 4 has fallen to Rs 14800 per 100 kg and looks set to fall further.

At Tokyo Commodity Exchange, Rubber for June delivery has falen to 226.7 Yen per kg having fallen 21 percent from a closing high of 286 Yen reached on September 8.

China constitutes 35% of the global demand for rubebr consuming 3.9 mn tons in 2012 .China’s tyre demand is expected to fall on weaker GDP growth while production in Thailand is expected to rise 4.3% to 4 million tons. . Global surplus for the year is expected ot be 366,000 tons.

At India’s National Multi Commodity Exchange (NMCE), rubber prices have fallen sharply to 13961 per 100kg for February delivery while March delivery has fallen to 14150 per 100 kg.

Milan Shah, Agri Commodities analyst at Commodity Online said that further downside can be expected in rubber on global cues.

Meanwhile, there are news reports that a national rubber policy is being worked out by the India Government. The objectives of the policy would include supply and demand projection, address duty inversion and strike a balance between interest of growers and industry.

CommodityOnline

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,291FansLike
12,893FollowersFollow
748FollowersFollow
- Advertisement -

Latest Articles

Popular Articles