MARKET COMMENTARY
⊳ Driven by gains in the overseas natural rubber market and hopes of import duty hike, natural rubber in the Indian market were seen stretching gains into third successive day on Tuesday. In the spot market, RSS4 was quoted at its highest since late January this year while on NMCE, the grade advanced about one percent. A rebound in other industrial commodities and equities aided the sentiments too. Still, dragging auto sales and fall in natural rubber consumption are likely to limit gains.
⊳ On Wednesday, natural rubber traded mixed in the international market. TOCOM rubber futures swung between positive and negative turf while SHFE and AFET rubber futures inched down after bouncing back during the previous session weighed down by concerns over demand. Despite China pledging recode government spending to support the economy, worries over demand from Europe and strengthening yen restricted gains on TOCOM.
MARKET NEWS
⊳ Crude rubber stockpiles held at Japanese warehouses rose 8.2 percent to 10,942 metric tons on Feb. 20, according to data from the Rubber Trade Association of Japan.
⊳ Kerala Chief Minister Oommen Chandy pressed for increase in import duty on rubber to protect the interest of domestic players during his meeting with Commerce and Industry Minister Anand Sharma.
⊳ Bridgestone to shut tire plant in Italy as EU tire segment for cars dropped by 13% from 2011 and no recovery seen to pre-2011 volume before 2020.
⊳ 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.
⊳ 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.
⊳ 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
TECHNICAL VIEW
RUBBER Apr NMCE
Broad Trend: Bearish
Near Term: Requires clearing 16380-16500 ranges to continue the present buying momentum. Unsuccessful moves to breach the same may call for a lower correction possibly towards 16130/15900 or more.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16380/16500 |
16380-15600 |
16130/16040 |
|
16650/16740 |
|
15900/15750 |
|
16850/16950 |
|
15600/15500 |
Source: Geojit Comtrade
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