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Sunday, August 14, 2022

India Rubber: Hits over 1-wk low on ICEX on spot cues, fall in TOCOM

By Rahul Dhuri

MUMBAI – The most active April contract of rubber on the Indian Commodity Exchange hit an over one-week low of 13,023 rupees per 100 kg, tracking weakness in key spot markets of Kerala, and a fall in benchmark contracts on the Tokyo Commodity Exchange, traders said.

On ICEX, the contract ended at 13,053 rupees per 100 kg, down 0.8% from Friday’s close.

Natural rubber prices were down in Kerala’s key spot markets on expectations of a rise in rubber imports, and subdued demand from tyre manufacturers. In Kottayam and Kochi, the RSS-4 variety was quoted in the range of 128-129 rupees per kg, down 1 rupee from the previous day of trade,  traders said.

Data by India’s Rubber Board showed that the RSS-4 variety was quoted at 128 rupees per kg today, down 1 rupee in both the markets.

The August contract of rubber on TOCOM hit a five-week low of 183.8 yen (115.13 rupees) per kg today because the yen strengthened against the dollar, and due to weakness in crude oil contracts on the New York Mercantile Exchange, analysts said.

Rubber prices take cues from crude oil as it is used to produce synthetic rubber, a substitute for natural rubber.

The most active contract on the Japanese bourse was down 0.5% at 182.9 yen per kg. A firm  Japanese currency makes the yen-denominated rubber costlier for overseas buyers.

In Thailand, the price of RSS-3 grade rubber was down $3.12 at $175.65 per 100 kg. In Malaysia, the price of SMR-20 grade variety was down $2.69 at $146.70 per 100 kg, according to data from India’s Rubber Board.

The following table shows today’s closing prices of rubber, in rupees per kg, as detailed by the Rubber Board, and the change in prices, in rupees, compared with the previous close:

KOTTAYAM KOCHI
GRADE PRICE CHANGE PRICE CHANGE
RSS-4 128.00 (-)1.00 128.00 (-)1.00
RSS-5 125.00 (-)1.00 125.00 (-)1.00
ISNR-20 124.00 Unch NA      NA
Latex 82.95 0.55 NA      NA

OUTLOOK

In the coming days, tepid demand from tyre manufacturers and expectations of a rise in rubber imports are likely to cap gains in prices of natural rubber in key markets of Kerala, traders said.  End

US$1 = 68.93 rupees

Edited by Aditya Sakorkar

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