MARKET COMMENTARY
Feebleness persisted in the domestic natural rubber market on Thursday. The overall market sentiments stayed weak and the commodity continued to be under selling pressure. According to sources, fear of further fall in prices saw arrivals improving amidst lacklustre demand from the tyre sector, which built upon additional stress on prices to move south.
As the week session concludes, sentiments seems to be muddled in the overseas natural rubber market. SHFE rubber futures inched up while AFET and TOCOM rubber futures resumed to decline after the rising in the previous day. Upbeat trade balance data from China probably lend support to the prices; however, investors’ may be awaiting the monthly employment data from the US for fresh directions.
MARKET NEWS
Natural rubber imports by India in October shoot up 81 per cent to 33486 tonnes while production, consumption as well as exports dropped 7.3, 3.57 and 59 per cent respectively on a year on year basis.
Rubber inventories in the warehouses monitored by SHFE rose 4.4 per cent to 147,662 tonnes last week.
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.
TECHNICAL VIEW
RUBBER Dec NMCE The broad trend is bearish, however, 15550 if held downside may call for a pullback towards 15800-15950 seems possible.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15800-15950 |
16250-15950-15550 |
15550/15400 |
|
16100/16250 |
|
15350/15150 |
|
16400-16540 |
|
14900/14750 |
Source: Geojit Comtrade
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