India Rubber: Prices fall in Kerala on low demand from stockists

Informist, Wednesday, Feb 1, 2023

By Mridula Lathan

MUMBAI – Prices of natural rubber fell marginally in the major markets of Kerala today due to a decline in demand from stockists, local traders said. However, transactions were also fewer in the market today. 

* Since the price outlook remains steady to marginally low for rubber in the short term, demand from stockists declined. Demand from them was weak because they already purchased enough quantity of rubber to sell when the prices rise. 

* The fall in global rubber prices also weighed on the sentiment in the domestic market, said C.J.Augustine, the owner of Chettiparambil traders. 

* The government proposed to increase the basic customs duty on compounded rubber to 25%, or 30 rupees per kg, whichever was lower, said Finance Minister Nirmala Sitharaman while presenting the Budget for 2023-24 (Apr-Mar). The previous customs duty rate was 10%. According to local traders, this revision will increase the cost of import and have a positive impact on demand and prices of domestic rubber in the long-term. 

* On Japan’s Osaka Exchange, the futures contracts of natural rubber ended lower today due to a firm yen which dents the demand for the yen-denominated rubber, as it makes the commodity expensive for buyers holding other currencies. 

* Losses in China’s Shanghai Futures Exchange also weighed on the rubber contracts on the Osaka Exchange. Cues from China are significant for rubber as the country is the largest consumer of natural rubber.

Following are the highlights of today’s trade:

–Widely-traded RSS-4 variety was sold at 141-141.50 rupees per kg, down 50 paise from the previous day.

–Most-active June contract on the Osaka Exchange was down 1 yen at 226.7 yen (143 rupees) per kg

End

Edited by Akul Nishant Akhoury

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