In the week gone by, natural rubber in the local as well as in the overseas market were bound south. Overall market sentiments stayed bleak on lacklusture demand. In the Indian market, RSS4 grade rubber was hovering near Rs.143 a kg while on NMCE the commodity traded mostly sideways with negative bias. Poor demand from the major natural rubber consuming sector along with higher imports continued to pressurize prices. However, an incessant rain for the past few days in major rubber growing areas in Kerala is likely to lend support. In the meantime, natural rubber in the overseas market is seen trading in tight ranges as the week’s session commences. TOCOM rubber futures were seen inching further losses after posting one of the biggest weekly losses in about six months. Rising inventories in China weighed on.
Malaysian NR imports down 7.8 per cent in May to 59486 tonnes on MoM basis.
Stockpiles monitored by Shanghai Futures Exchange rose 1.8 per cent to 151,784 mt Jul. 10, most since Jan. 16. Crude rubber stockpiles held at Japanese warehouses fell 1.6 percent to 20,874 metric tons on June 30, according to data from the Rubber Trade Association of Japan.
Natural Rubber imports by China stood at 280000 tonnes in the month of June according to its customs agency.
India’s NR imports in June surged 41.5 percent from a year ago to 32,550 tonnes despite a rise in local output, the state-run Rubber Board said.
According to International Rubber Study Group, global natural rubber (NR) consumption increased by 4.0% in Q1 2014, while NR production was up 1.2%. For the quarter, the world NR market was in a marginal deficit situation, resulting in a reduction of the world NR stocks level.
Rubber stocks in China’s bonded warehouses in Qingdao fell to a five-month low to 305500 tonnes on June 30 as tyre makers chased cheaper local supplies at a time when arrivals of the commodity have dried up due to a probe into a suspected financing scam at the port.
RUBBER Aug NMCE
The prevailing bearishness is likely to stretch once considerably good support at 14100 is breached. Else, sideways movement inside 14100-14500 ranges may be seen.TURNAROUND
Source: Geojit Comtrade
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