MARKET COMMENTARY
Natural rubber continued to rule steady in the Indian markets awaiting fresh triggers for further directional moves. In the physical market, quotes for RSS4 grade rubber stayed around Rs.157 a kg while range bound movements were witnessed in NMCE on Thursday. The underlying sentiments remained weak. Lack of buying interest amidst rise in production and stockpiles hurt prices even though higher international natural rubber prices, increased prospect for exports which provided lower level support to prices.
As the week’s session concludes, sentiments are mixed in the overseas natural rubber market. Comments by the European Central Bank President yesterday dampened the overall market mood. However, an upbeat Chinese trade balance data lent support. TOCOM rubber futures inched lower, though prices remained in the vicinity of the 10-month high. AFET pared initial gains and dipped while SHFE rubber futures were trading on a greener turf.
MARKET NEWS
Natural rubber imports by China rose 19 per cent in January to 250000 tonnes on MoM basis.
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
Download this report (full content – PDF file) bellow:
