MARKET COMMENTARY
Natural rubber prices were on a consolidation mode last week. RSS4 in the spot market steadied at Rs.194-196, a kg supported by tight supplies. Absence of sellers and sporadic buying by the tyre sector buoyed prices. However, prospects of higher imports in the coming months restricted further gains in the local market. High prices prevailing in the local market and widening gap between prices prevailing in the domestic and overseas market is pondering upon the market. In the mean time, the grade on NMCE moved largely sideways, awaiting fresh triggers for further directional moves.
On Monday, TOCOM rubber futures were seen swinging between positive and negative turfs while SHFE and AFET rubber futures inched up. Strengthening dollar weighed on the commodity amidst a lower than expected jobs data from the US.
MARKET NEWS
ANRPC sees natural rubber imports by China rising 6.6 per cent in 2013 to 3.59 million tonnes.
Indonesian Agricultural Ministry expects 2013 natural rubber output to be at 3.18 million tonnes against the previous estimate of 2.77 million tonnes.
Rubber inventories in warehouses monitored by SHFE declined by 20 tonnes to 117913 tonnes last week. Crude rubber stockpiles held at Japanese warehouses fell 9.7 percent to 10,192 metric tons on July 20, according to data from the Rubber Trade Association of Japan.
Rubber Board revise down June 2013 production to 38000 tonnes from the earlier estimate of 54000 tonnes.
According to Thai Agricultural Minister, the Government has no plans to sell the rubber stocks, which stands at 210000 tonnes that it brought through market intervention scheme for now.
Malaysian Plantation Industries and Commodities Ministry targets to replant 37,282 hectares of rubber and open 13,000 hectares of new rubber plantations in the country this year.
The Automotive Tyre Manufacturers Association (ATMA) has informed Union commerce minister Anand Sharma that the industry is going for huge imports of natural rubber as the industry’s production schedules have been hit by the limited availability of natural rubber and its spiralling prices in the domestic market.
TECHNICAL VIEW
RUBBER Sep NMCE
Largely to trade sideways inside 17950-18800 ranges and break out from any of the either sides required for further directional move.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
18320/18500 |
18800-17950 |
18100/17950 |
|
18600/18800 |
|
17850/17700 |
|
19000/19280 |
|
17600/17420 |
Source: Geojit Comtrade
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