MARKET COMMENTARY
Broad weakness prevailed in the Indian natural rubber market. On NMCE, rubber futures traded steady awaiting fresh triggers amidst poor demand and higher imports. The most active December rubber futures ended almost flat in volume less trades on Wednesday. Activities in the physical market were muted owing to ‘harthal’ in the major Kottayam market in protest against steep declines in domestic natural rubber prices and demanding hike in import duty.
Natural rubber prices in the overseas market were in red on Thursday. TOCOM rubber futures dropped for the first time in five days, shedding more than one per cent as worries gripped the market that the US Federal Reserve may taper its massive asset purchase program earlier than anticipated. SHFE and AFET rubber futures followed the suit too.
MARKET NEWS
Rubber growers held a ‘harthal’ in the Kottayam dist. of Kerala on Wednesday, in protest against the falling rubber prices and demanding cutting down imports as well as raising the import duty.
Reports says China bought around 54,000 mt of Ribbed Smoked Sheet grade natural rubber from local suppliers for government stockpiles. ⊳Crude rubber stockpiles held at Japanese warehouses rose 21 percent to 5,314 tons on Oct. 20, according to data from the Rubber Trade Association of Japan.
According to Chinese media reports, the rubber industry has asked the National Development and Reform Commission to waive the 20 percent import tariff on rubber for tire manufacturing.
Bridgestone to increase output of passenger car radial tire at its plant in Wuxi by 5,300 tires/day, according to a statement to the Tokyo Stock Exchange.
Amidst new round of protests by farmers in Thailand’s southern provinces urging government to buy rubber at 100 baht/kg, Farm Minister rules out buying at 100 baht/kg as it will distort the market.
Indian tire maker Ceat Ltd. plans to nearly double car tire capacity at its 2-year-old plant in Halol, India, requiring an investment of $104 million.
TECHNICAL VIEW
RUBBER Dec NMCE
Selling pressure likely to persist probably towards 16000-15800 levels as long as 16500 ranges caps upside. Slippage past 15800 could incite another round of sharp liquidation. Else, expect a bounce back.
TURNAROUND
Resistances |
LEVELS |
Supports |
16280/16400 |
16540-16280-15800 |
16100/16000 |
16540/16750 |
|
15960/15800 |
16850/17000 |
|
15700/15550 |
Source: Geojit Comtrade
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