Sentiments were feeble in the local natural rubber market. On Tuesday, RSS4 dwindled to its weakest level in five years in the physical market, dragged down by poor demand amidst decline in the major overseas market. Despite tight supplies to the market, demand has been subdued from the tyre sector restricting gains. On NMCE too, declines were witnessed with the benchmark December rubber futures shedding more than one per cent. However, a rebound being witnessed in the major overseas market on Wednesday is likely to improve the market mood. In the international market, TOCOM rubber futures jumped about two percent following the previous session declines buoyed by a weaker yen and rising equities. SHFE and AFET rubber futures gained too, in tandem with TOCOM.
⊳ Government appointed special sub-committee likely to meet this week to formulate the much awaited National Rubber Policy. The government panel is also likely to formulate measures aimed at boosting domestic demand for rubber and somehow protect farmers from the steep fall in prices.
⊳ China’s natural rubber imports in October stood at 300000 tonnes.
⊳ Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.6 percent to 174833 tonnes last week.
⊳ Rubber Mark and Market Fed to buy rubber by paying Rs.5 a kg above the Rubber Board rates.
⊳ Reports says Thailand Rubber Estate Organisation bought 400 tonnes of natural rubber to support falling prices.
⊳ Inventories in Qingdao, China’s main rubber-trading hub, -3.1% to 139,400 mt: Qingdao International Rubber Exchange Market.
⊳ Japan-based Yokohama Rubber today says it has started commercial production at its first manufacturing plant in India at Bahadurgarh, Haryana with an investment of over Rs 300 crore and the unit has an installed capacity of 2,000 tyres per day.
⊳ Thailand, Indonesia and Malaysia likely to meet on Nov. 20-21 to discuss plans to set prices together and reduce supply.
⊳ Indonesian Rubber Association makes a second appeal to its members to impose strict limit on sales until the second quarter of 2015
RUBBER Dec NMCE
While there exists weakness, a direct fall below 11450 with volumes could intensify the prevailing bearishness. However, as long as 11450 hold down side, pullbacks cannot be ruled out but it is mandatory to break and sustain above 12100 ranges to lessen the prevailing weakness.
Source: Geojit Comtrade