MARKET COMMENTARY
Natural rubber continued to rule firm in the Indian market. RSS4 in the spot market was quoted at its highest in over four month on Tuesday bolstered by limited arrivals though activities were sluggish owing to upcoming holidays and financial year end. However, on NMCE, the grade was seen easing following a five straight sessions of advances with the most active April rubber futures shedding nearly one percent. The underlying market fundamentals are mixed. Even as seasonal fall in production and limited arrivals are supporting the prices, muted demand and falling consumption are weighing on the overall market, restricting gains.
On Tuesday, natural rubber prices in the overseas market were seen reversing the previous session gains. TOCOM rubber futures were under pressure from a strengthening yen and Euro Zone worries.
MARKET NEWS
Tyre manufacturing major Michelin expects to commence production at its new facility near Chennai by mid-2013.
TOCOM March rubber futures expired with 406 lots being delivered against 511 lots in the previous month.
China’s Rubber Industry Association sees synthetic and natural rubber consumption rising 7.79 per cent and 7.25 per cent resprctively in 2013
According to Vietnam’s Ministry of Agriculture and Rural Development, the nation’s rubber exports for first three months of 2013 seen at 200,000 tons, down 37% vs same period last year.
The Malaysian Rubber Board is planning to launch a second edition of strategies for the local rubber industry within the next few months in view of the new challenges and prolonged issues in the thriving industry, according to director-general Datuk Dr Salmiah Ahmad.
National Multi Commodity Exchange registered a 405 per cent rise in rubber delivery at 3,087 tonnes this month against 763 tonnes in March 2012.
Leading tyre companies, including Apollo, Ceat and MRF, have cut prices by one to five per cent across all product categories.
TECHNICAL VIEW
RUBBER Apr NMCE
Broad Trend: Seen weak, yet successful attempts to clear 17050 ranges could lessen the weakness.
Near Term: Retreat from 16870 was held near the neckline support in the previous session. While the chart pattern suggests there is still more room for upside, fall below 16400 is likely to push prices further down to 16200 or more.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16950/17050 |
17050-16200 |
16770/16650 |
|
17200/17400 |
|
16500-16400 |
|
17650/17800 |
|
16250/16140 |
Source: Geojit Comtrade
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