MARKET COMMENTARY
A mixed trend was witnessed in the domestic natural rubber market on Thursday. RSS4 managed to sustain the earlier gains in the spot market while on NMCE the grade was seen reversing the previous session gains to conclude the day’s trade around one per cent down. A turnaround in natural rubber prices in the overseas market in the after noon session coupled with lacklustre budget probably punctured the sentiments. However, imminent import duty hike in natural rubber prices lent support.
On Friday, natural rubber resumed its downtrend in the international market and is poised to culminate the week’s session on a weak note. TOCOM, AFET and SHFE rubber futures tumbled around three per cent on apprehensions over the US economy as the deadline for spending cuts is due to kick in. Slowdown in Chinese manufacturing activity and fall in Japanese consumer prices added further pressure on the market.
MARKET NEWS
AIRIA expresses concern on the move to increase import duty on natural rubber which would hit thousands of small units.
Tyre industry objects to the Centre’s move to raise the import duty on natural rubber from Rs 20 per kg to Rs 34 per kg. In view of the widening gap in domestic production and consumption, the industry says, the import of natural rubber is inevitable.
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.
Bridgestone to spend $299.7m to build plant in China’s Liaoning province as part of relocation of Shenyang plant.
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.
Else, anticipate higher level selling.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15800/15960 |
15960-15100 |
15600-15500 |
|
16050/16250 |
|
15200/15100 |
|
16400/16700 |
|
14900/14750 |
Source: Geojit Comtrade
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