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Wednesday, December 7, 2022

India Rubber: Prices steady in Kerala market; outlook still weak

Informist, Monday, Nov 7, 2022


By Rahul Dhuri


MUMBAI – Prices of natural rubber in the key markets of Kerala were largely unchanged today. However, the near-term outlook for the commodity remains weak due to tepid demand from bulk buyers amid expectations of higher supply.


* Tyre companies may go slow on purchases because of a likely downturn in the global economy. Tapping in key growing areas of Kerala will continue till January, adding to the supply, said Raju Varghese, owner of Polachirayil Traders based in Kottayam, Kerala.


* Tapping of rubber was affected last week due to rain in key growing areas of Kerala, a local trader said.                                                                                                                                                   

* Nearly 65% of natural rubber is consumed by the automobile industry.


* Futures contracts of natural rubber on Japan’s Osaka Exchange recouped early losses and ended higher due to value buying by investors after the recent fall in prices, analysts said. 


* Future contracts of natural rubber had fallen on Japan’s Osaka Exchange in early trade due to a fall in crude oil futures on the New York Mercantile Exchange and also because of concern about strict COVID-19 restrictions in China.


* Rubber prices take cues from crude oil prices as the oil is used in the making of synthetic rubber. It is also the peak tapping season globally for rubber. 


* Strict restrictions imposed in China to control COVID-19 cases also weighed on the prices. China accounts for 42% of the global demand for natural rubber. 


Following are the highlights of today’s trade:
 –The widely traded RSS-4 variety of rubber was sold at 149-150 rupees per kg in Kerala, unchanged from the previous day of trade. The state accounts for nearly 70% of India’s natural rubber output.
 –The most active April contract of rubber on the Osaka Exchange was up 1.6 yen at 216.1 yen (120.65 rupees) per kg.  End


Edited by Maheswaran Parameswaran


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Source: Cogencis

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