MARKET COMMENTARY
Sentiments were firm in the local natural rubber market backed by bullish moves in the international market. RSS4 in the physical market inched up to Rs.164 a kg. Yet, NMCE rubber futures continued to move in tight ranges awaiting fresh cues for further directional moves. Rising stockpiles in NMCE accredited warehouses and muted off take by the major natural rubber consuming industries restricted gains. However, with peak season about to end and bullish trend in the overseas market provided firm support to prices.
Continuing its uptrend, TOCOM rubber futures hit a nine-month high after yen sliding to a two and a half year low. Gain in other commodities and equities too improved the sentiments. In the mean time, major tyre manufactures were seen chasing SIR 20 in the physical market. Fall in supplies owing to disruption in tapping in Malaysia and Thailand lent support. Moreover, anticipation of falling in supplies as dry season is about to begin in Thailand and Malaysia kept prices firm. However, rise in prices attracted less buying from the top consumer China.
MARKET NEWS
SIAM again revised lower the car sales growth forecast for 2012- 13 to 0-1.0 per cent mainly owing to high inflation, slowing economy and rising fuel costs.
Natural rubber imports by China declined to 210000 tonnes in December from 220000 in the previous month.
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 tons, 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.
TECHNICAL VIEW
RUBBER Feb NMCE
Prices continued to move sideways near the upper-end of the falling trend channel. As long as 17100 region caps upside, choppy trades in 16500-17100 regions will be seen and requires a break out from either the sides for further directional moves.
Source: Geojit Comtrade
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