MARKET COMMENTARY
Natural rubber prices ruled mostly flat in the local markets on Tuesday awaiting fresh cues for the further directional moves. In the ready market, in lacklustre trades, RSS4 steadied near Rs.162.50/kg while NMCE rubber futures marginally improved during the afternoon trades. The benchmark February rubber futures in NMCE culminated the session 0.7 per cent up. The underlying market sentiments are mixed keeping prices in tight ranges. Still, with the peak production season to end soon in Kerala, top natural rubber producing state in India, steep downsides may be limited though demand from the tyre sector may weigh on.
Natural rubber prices are seen steadying in the overseas market after their recent rallies. On Wednesday, TOCOM and SHFE rubber futures inched up probably on anticipation that the top consumer China may boost purchases ahead of the Chinese New Year holidays starting next month. However, AFET rubber futures edged down in muted trades.
MARKET NEWS
With 1.01 million tons of natural rubber exported in 2012, up 23.8 percent over 2011, Vietnam became the world’s third largest natural rubber exporter after Thailand and Indonesia, Communist Party of Vietnam Online Newspaper reported on Tuesday.
Japan’s motor vehicle sales dropped 3.4 percent to 212,429 units in December for a fourth month of decline, according to data released by the Japan Auto Dealers Association.
According to ANRPC, natural rubber consumption by China rose 6.4 per cent to 3.83 million tonnes, while in India gained 3.9 per cent to 995,000 tonnes during 2012. Natural rubber production among its member countries last year amounted to 8.06m tons, excluding data from Thailand during November and December and from Indonesia during June to December as against a total of 10.3m tons in 2011.
According to the Rubber Board, India’s synthetic rubber consumption rose by 6 per cent to 2.26 lakh tonnes in the first half of this fiscal, while, production rose marginally to 54,778 tonnes during the period.
TECHNICAL VIEW
RUBBER Feb NMCE Currently, prices are varying inside 17100-16500 ranges and require a break out from either the sides for further directional moves. Successful moves to break and sustain 17100 regions are likely to take prices higher towards 17240/17400 or more. Slippage past 16500 may induce further weakness.
Source: Geojit Comtrade
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