MARKET COMMENTARY
Despite a weak trend in the overseas natural rubber prices, the Indian market sentiments improved. Comments by the Union Commerce and Industry Minister that there was a need to review the existing formula to fix the import duty on rubber probably gave a lift to the market mood. In the physical market, quotes for RSS4 edged up to Rs157 a kg while NMCE rubber future rose during the afternoon session after trading mostly steady during the morning trades. The most active April rubber futures on NMCE gained for the second consecutive day to culminate the session 0.5 percent higher.
Natural rubber prices in the overseas market took a breather from the recent declines on Tuesday. On TOCOM, the benchmark August rubber futures bounced back from its weakest in two and a half month as low prices probably lured buyers. SHFE and AFET rubber futures rebounded too. Gains in oil and other industrial commodities on China’s growth prospects supported the sentiments.
MARKET NEWS
The Commerce Ministry has decided to introduce a Modified Price Stabilisation Fund (MPSF) scheme for the plantation sector covering tea, coffee, rubber, tobacco and cardamom. The new scheme will be in force for five years from April 1, 2013.
Minister for Commerce and Industry Anand Sharma said on Monday that there was a need to revise import duty on rubber and recommendations on the same has been sent to the Revenue Dept.
US auto sales rise nearly four per cent in February to 15.38 million vehicles.
Rubber inventories in the warehouses monitored by SHFE rose 0.9 per cent to 103299 tonnes.
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.
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.
TECHNICAL VIEW
RUBBER Apr NMCE
Broad Trend: Bearish
Near Term: Could see extending the previous session gains but requires clearing 16380-16500 ranges to lessen the prevailing bearish sentiment.
Trend: Bearish Near Term: Requires clearing 16380-16500 ranges to lessen the prevailing bearish sentiment.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16260/16380 |
16380-15600 |
16040/15900 |
|
16500/16650 |
|
15750/15600 |
|
16740/16850 |
|
15500/15360 |
Source: Geojit Comtrade
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