MARKET COMMENTARY
Bearishness persisted in the Indian natural rubber last week. Despite decline in natural rubber production, burgeoning imports and decline in consumption pressurized prices to move south. In lacklustre trades, RSS4 grade rubber dwindled to its weakest level since February on poor demand from the tyre sector. In the futures segment, the benchmark December rubber futures on NMCE charted fresh contract lows. Weakness in natural rubber prices in the overseas market weighed on too. Latex (drc60%) prices declined as well.
Positive signals from China and the US lifted TOCOM rubber futures on Monday. The benchmark April rubber futures rose more than one per cent after yen weakened following upbeat employment data from the US. Quickening factory output from China lent further support.
MARKET NEWS
China, the world’s largest natural rubber importer, imported 190,000 tons of the material in Oct this year, 11.76% more than in the corresponding period of last year.
Rubber inventories in the warehouses monitored by SHFE rose 4.4 per cent to 154,194 tonnes last week.
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.
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
Even as the broad trend stays weak, the pullback being witnessed after taking support near 15600 may extend if prices clears the immediate resistance of 15800. However, it requires clearing and sustaining the stiff resistance at 16250 to lessen the prevailing bearishness. A direct fall below 15550 may add-on selling pressure.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15800/16000 |
16250-15800-15550 |
15700/15550 |
|
16100/16250 |
|
15400/15350 |
|
16400-16540 |
|
15150/14900 |
Source: Geojit Comtrade
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