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Thursday, September 29, 2022

India Rubber: Prices extend fall in Kerala on sluggish demand

Informist, Thursday, Jul 7, 2022

 

By Rahul Dhuri 

 

MUMBAI – Prices of natural rubber fell for the third straight day in key markets of Kerala due to sluggish demand from domestic stockists. Weakness in global market also weighed on sentiment in the domestic market.

 

* However, concerns over supply cushioned a sharp fall in rubber prices. Lower availability of raw material is seen supporting prices as rains in key producing regions have affected tapping activity, said Joy Alencherry, owner of J&J Trade Links based in Kerala.

 

* Futures contracts of natural rubber on Japan’s Osaka Exchange fell marginally due to strength in the yen against the dollar and concerns over demand, analysts said.  

 

* A firm Japanese currency makes the yen-denominated rubber expensive for buyers holding other currencies. Weakness in crude oil contracts on New York Mercantile Exchange further weighed on rubber prices. 

 

* Natural rubber prices take cues from movement in crude oil as the latter is used to manufacture synthetic rubber.

 

* Crude oil futures on the NYMEX fell in Asian trade as inventories in the US increased unexpectedly in the week ended Friday. The sentiment was further dampened by the recession fears and a weakening demand outlook. 

 

Following are the highlights of today’s trade:

–In Kerala, which accounts for nearly 70% of India’s natural rubber output, the widely traded RSS-4 variety was sold for 177-178 rupees per kg, down 1 rupee from the previous day.

–The most active December contract on Osaka Exchange was down 0.3 yen at 247.5 yen (144.61 rupees) per kg. 

 

End

 

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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© Informist Media Pvt. Ltd. 2022. All rights reserved.

Source: Cogencis

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