MARKET COMMENTARY
Central Govt. decision to revise natural rubber import duty lifted prices in the local market on Tuesday. On NMCE, reversing initial losses, RSS4 rebounded after media reported that the government is certain to raise the import duty to 20 percent or Rs.34, which ever is lower from the existing 20 percent or Rs.20. However, gains were limited owing to underlying weak market fundamentals. Amidst falling prices in the overseas market, high stockpiles in the NMCE accredited warehouses, muted demand and fall in consumption are likely to restrict gains.
On Wednesday, trend is partially mixed in the international natural rubber markets. While TOCOM rubber futures stretched losses, SHFE and AFET rubber futures took a breather after the recent falls. Strengthening yen coupled with renewed worries over Euro Zone crisis weighed on the sentiments. Moreover, burgeoning stockpiles in China kept gains under check.
MARKET NEWS
India to raise import duty on natural rubber from present Rs.20 or 20 percent to Rs.34 or 20 per cent, which ever is lower.
According to a note from the All India Rubber Industries Association, in its pre-budget representation, the rubber industry body has asked for reduction in customs duty on Natural Rubber to 7.5 per cent or Rs.10 a kg from the prevailing 20 per cent or Rs.20 a kg whichever is lower.
Rubber inventories in the warehouses monitored by SHFE rose 2.4 per cent to 102416 tonnes.
Crude rubber stockpiles held at Japanese warehouses rose 21 percent to 8,790 metric tons on Jan. 31, according to data from the Rubber Trade Association of Japan.
Bridgestone to spend $299.7m to build plant in China’s Liaoning province as part of relocation of Shenyang plant.
The Thai government will not renew its rubber-buying scheme, which is due to expire at the end of March, as prices have rebounded, according to the Deputy Agriculture Minister.
TECHNICAL VIEW
RUBBER Mar NMCE
Broad Trend: Bearish
Near Term: Successful attempts to clear stiff obstacle placed at
15950-16050 ranges are likely to lift prices towards 16250 or more.
TURNAROUND
| Resistances | LEVELS | Supports |
|
15850/15960 |
15960-15100 |
15600-15500 |
|
16050/16250 |
|
15200/15100 |
|
16400/16700 |
|
14900/14750 |
Source: Geojit Comtrade
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