MARKET COMMENTARY
Stretching previous session gains, RSS 4 in the domestic market inched higher on Wednesday. In the physical market, quotes for the grade rose to Rs.157.50 a kg, highest in nearly two weeks while on NMCE, prices reversed initial losses and edged up during afternoon trades. Moves to hike import duty on natural rubber coupled with a rebound in natural rubber prices in the overseas market, especially in the trend setting TOCOM exchange bolstered prices. Yet, gains remained capped as the underlying fundamentals remained weak. Furthermore, the focus will now be on the Union Budget for the FY 2013-14 to be tabled in the Parliament today.
TOCOM rubber futures bounced from the two month lows while SHFE extended previous session gains on Thursday after reports that Thailand, Indonesia and Malaysia may extend shipment cuts to support prices. Gains in other industrial commodities and equities supported the sentiments too. However, AFET rubber futures were seen declining.
MARKET NEWS
Thailand, Indonesia and Malaysia may extend shipment cuts if prices drop below $3 per kilogram when the program ends in March, Darmansyah Basyaruddin, chief executive officer at the International Rubber Consortium, told reporters at seminar in Jakarta on Wednesday.
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.
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 the stiff obstacle placed at 15950-16050 ranges are likely to lift prices towards 16250 or more.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15960/16050 |
15960-15100 |
15600-15500 |
|
16250/16400 |
|
15200/15100 |
|
16560/16700 |
|
14900/14750 |
Source: Geojit Comtrade
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