MARKET COMMENTARY
Natural rubber continued to trade range bound in the Indian market. On Thursday, quotes for RSS4 in the physical market hovered near Rs.158.50 a kg. Despite scanty arrivals, quantity buyers continued to elude keeping market under pressure. In the meantime, on NMCE, the most active December rubber futures succumbed to higher level selling, shedding more than one per cent. Weakness in natural rubber prices in the overseas market hurt the sentiments too.
On Friday, natural rubber prices carried on to decline in the international market. TOCOM rubber futures dropped about a per cent weighed down by strengthening yen. However, a positive Chinese manufacturing PMI data will probably lend support to the declining prices.
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 range caps upside. However, for the day, mild pullbacks to 16200 ranges seems possible before resuming falling. Slippage past 15800 could incite another round of sharp liquidation.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16250/16400 |
16540-16280-15800 |
16000-15960 |
|
16540/16750 |
|
15800/15700 |
|
16850/17000 |
|
15550/15400 |
Source: Geojit Comtrade
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