MARKET COMMENTARY
Bearishness in the overseas natural rubber market coupled with underlying weak market fundamentals kept natural rubber under pressure in the Indian market. RSS4 in the physical market inched lower toward Rs.163 a kg on Monday while on the NMCE, the benchmark May rubber futures slipped nearly two per cent after trading in thin ranges for the past few sessions on lacklustre buying interest.
On Tuesday, natural rubber continued its downtrend with TOCOM rubber futures tumbling to a five month low. Market remained under pressure from demand woes especially from the top consumer China. Amidst swelling stockpiles, slow pace of economic activity in China continue to hurt prices. Reports that tire major Bridgestone may consume less rubber and falling crude oil prices too weighed on the sentiments. Meanwhile, tapping is expected to resume soon in Thailand, the top natural rubber producer after ‘wintering’.
MARKET NEWS
Rubber stockpiles at Qingdao, China’s largest hub for the tropical commodity, rose to a record 366,900 tons by April 15 according to the Qingdao International Rubber Exchange Market.
Rubber inventories in the warehouses monitored by SHFE dipped 0.1% to 117385 tonnes last week.
Thailand, Indonesia and Malaysia, the top rubber suppliers, cut exports by 300,000 metric tons as targeted and will discuss replanting as a complementary measure, according to the International Tripartite Rubber Council.
Thailand and Malaysia will collaborate in setting up rubber industry zones on both sides of the common border in order to create jobs and income for citizens of both nations.
Thailand targets to lower shipments of rubber by 10% through end of May to help support prices, says Thai deputy farm minister Yuttapong Charasathien.
Crude rubber stockpiles held at Japanese warehouses rose 6.7 percent to 15,799 metric tons on March 31, according to data from the Rubber Trade Association of Japan.
Natural rubber imports by India surged to a record high to hit 216642 tonnes in FY’13. Consumption and production showed only a marginal rise during the same period, at 971980 and 912200 tonnes respectively.
RUBBER May NMCE
Broad Trend: Seen weak.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16100/16250 |
16250-15900-15480 |
15800/15650 |
|
16400/16550 |
|
15480/15260 |
|
16700/16860 |
|
15100-14900 |
Source: Geojit Comtrade
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