MARKET COMMENTARY
In the week gone by, natural rubber traded largely range bound in the Indian market. In the spot market, RSS4 grade rubber was held in thin ranges of Rs.162-163 a kg while on NMCE, trades were mostly choppy inside Rs.16200-16700 levels to culminate the week down by nearly one per cent. Even as the broad trend remained weak, increased prospects of import duty hike and limited arrivals owing to anticipation of rise in prices in the ongoing lean production phase lent lower level support. However, the local produce now being traded on a premium to that in the overseas market following the steep fall last week owing to burgeoning stockpiles in China and Japan capped gains. Moreover, fall in consumption and sluggish auto sales weighed on.
Natural rubber resumed its downtrend in the international market on Monday. While markets are already reeling under pressure from rising stockpiles in China, renewed worries over European debt crisis dragged down prices.
MARKET NEWS
Europe braced for renewed turmoil as outrage in Cyprus over an unprecedented levy on bank deposits threatened to derail the nation’s bailout.
Rubber inventories in the warehouses monitored by SHFE rise 5.9 per cent to 113803 tonnes.
Import duty on natural rubber to be increased soon in a bid to support the local industry and a notification giving effect to the rise will be issued soon, Commerce and Industry Minister Anand Sharma said on Thursday.
Chinese authorities on Tuesday ordered local warehouses in Qingdao, Shandong province, to clear part of their rubber stocks within 10 days due to safety concerns.
Thailand’s Rubber Estate Organization spent 19.4b baht to buy 194,028 tons of rubber sheet from farmer cooperatives, said Pakdihan Himathongkam, a deputy government spokesman, without giving a time frame.
Malaysia’s natural rubber (NR) production rose by 15.3 per cent to 87,957 tonnes in January from December last year, according to the Statistics Department.
TECHNICAL VIEW
RUBBER Apr NMCE
Broad Trend: Weak
Near Term: As long as 16850-17050 regions caps upside, higher level selling may be witnessed and slippage past 16100 would induce further weakness.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16500/16700 |
17050-16100 |
16200-16140 |
|
16850/16950 |
|
16040/15900 |
|
17050/17200 |
|
15750/15600 |
Source: Geojit Comtrade
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