Informist, Thursday, Nov 3, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber were down in spot markets of Kerala today as the near-term outlook remains weak due to tepid demand from tyremakers amid anticipation of higher supply, traders said.
* Tapping in key growing areas of Kerala will continue till January. Tyre companies may also go slow on purchases due to a likely downturn in the global economy, said Joy Alencherry, owner of J&J Trade Links, based in Kerala.
* India is among the world’s largest producers of rubber and the third-largest consumer of the commodity.
* Natural rubber is a key raw material for the tyre industry. Nearly 65% of natural rubber is consumed by automobile industry.
* Futures contracts of natural rubber extended Wednesday’s fall on Japan’s Osaka Exchange today as sentiment remains weak due to tepid demand from bulk buyers amid a likely rise in supply. Supply is seen higher as it is the peak tapping season globally, industry experts said.
* Also, rubber prices are likely to remain subdued in the long term as China has imposed strict restrictions to curb fresh COVID-19 cases. Frequent lockdowns have resulted in subdued economic activities. China accounts for 42% of the global demand for natural rubber.
Following are the highlights of today’s trade:
–In Kerala, the widely traded RSS-4 variety was sold at 147-148 rupees per kg, down 1 rupee from the previous day. The state accounts for nearly 70% of India’s natural rubber output.
–The most active April contract of rubber on the Osaka Exchange was down 3.9 yen at 208.7 yen (116.87 rupees) per kg. End
Edited by Deepshikha Bhardwaj
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