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India Rubber: Down in Kerala tracking early weakness in global mkt

Informist, Tuesday, Sep 13, 2022

 

By Rahul Dhuri

 

MUMBAI – Prices of natural rubber in the key markets of Kerala were down today, tracking early weakness in the global market, where prices slipped as lockdowns in China dented the outlook on demand for the commodity. 

 

* China has imposed strict lockdowns to curb the spread of COVID-19 in several provinces, and its zero COVID policy is expected to keep demand for key commodities subdued in the coming weeks. The Asian giant is one of the top consumers of rubber in the world.

 

* A likely rise in the domestic supply amid dwindling demand from bulk buyers further weighed on rubber prices, said Thaha Mohamed, the owner of Kottayam-based Sara Traders.

 

* Domestic supply is likely to be better than expected on account of a weak monsoon in Kerala during the first three weeks of August, which is good for uninterrupted harvesting, said E.J. Sunny, the owner of Ernakulam-based Edattukdi Rubber Traders. 

 

* Another factor that could weigh on the natural rubber market is that shipping logistics have returned to normal and ocean freight rates have come down sharply, making natural rubber imports faster and cheaper, experts said.

 

* Futures contracts of natural rubber on Japan’s Osaka Exchange recouped early losses and ended higher tracking gains in crude oil prices. Crude oil is used in the making of synthetic rubber.

 

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 at 150-151 rupees per kg, down 1 rupee from the previous day.

–The most active February contract of rubber on the Japanese bourse was up 2.7 yen at 225.6 yen (125.95 rupees) per kg.

 

End

 

US$1 = 79.14 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Maheswaran Parameswaran

 

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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