MARKET COMMENTARY
Higher production and rising stockpiles amidst muted demand continues to weigh on natural rubber prices. On Wednesday, a mixed trend was witnessed in the domestic market. In the physical market, RSS4 traded mostly steady around Rs.157 a kg while in NMCE, the grade inched lower. Slowing auto sales in the country and muted demand from the tyre sector pressurized prices to move south. However, restricted arrivals and wide gap between natural rubber prices, local and overseas market lent lower level support. Moreover, anticipation of recovery in prices as the market is about to enter the lean production phase too supported the sentiments.
With the top natural rubber consumer China going on a week long holiday next week, activities are likely to turn sluggish in the overseas natural rubber market. Natural rubber is seen declining on Thursday with TOCOM rubber futures retreating from the 10-month high. Also, caution prevailed in the market ahead of European Central Bank’s rate announcement later the day.
MARKET NEWS
According to Rubber Board, India’s synthetic rubber consumption rose by 17 per cent to 36,710 tonnes in October last year while the production rose by 5 per cent to 9,006 tonnes during the period.
According to Association of Natural Rubber Producing Countries, rubber imports by the top consumer China surged 18 per cent during 2013 to 3.37 million tonnes.
According to Malaysian Rubber Board, natural rubber output may expand 6.5 per cent in 2013 on improving yield and higher prices.
According to Rubber Trade Association of Japan, crude rubber inventories in the Japanese ports fell by 202 tonnes to 6934 tonnes in the 10 days to January 10 from a four month peak marked at the end of 2012
According to Vietnam’s General Statistics Office, the nation shipped 117,000 tons of rubber in Dec., up 11% from previous assessment of 105,000 tons.
According to IRSG, NR production is set to outpace consumption by 179,000 metric tons this year and 153,000 tons in 2014.
TECHNICAL VIEW
RUBBER Feb NMCE
Broad Trend: Weak
Near Term: Higher level selling likely as long as 16250 caps upside.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16050-16100 |
16250-15500 |
15700/15500 |
|
16240/16400 |
|
15380/15260 |
|
16540/16700 |
|
15100/14900 |
Source: Geojit Comtrade
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