MARKET COMMENTARY
A mixed trend is being witnessed in the local natural rubber market. While latex prices continue to decline, RSS4 grade rubber is seen edging higher following its slump to multi month-lows. On NMCE, the benchmark December rubber futures stretched gains, rising more than 1.5 per cent on Tuesday on short covering. In the spot market, quotes for the grade firmed up to Rs.158 a kg. However, the underlying sentiments still stayed weak.
On Wednesday, natural rubber in the overseas market traded steady with a negative bias. TOCOM rubber futures were hovering near the one week high buoyed by a weaker yen. However, forecast suggesting a rise in natural rubber output from the key growers weighed on the sentiments.
MARKET NEWS
According to the Association of Natural Rubber Producing Countries, natural-rubber production may rise 3.6 percent to 11 million tons this year from 2012.
SIAM sees car sales in India falling by one to four per cent in the current financial year. October car sales drops 3.9 per cent on year on year basis.
Wholesale deliveries of cars, multipurpose and sport utility vehicles rose to 1.61 million last month, data from the state-backed China Association of Automobile Manufacturers showed.
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.
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.
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.
TECHNICAL VIEW
RUBBER Dec NMCE
While prices were held near the stiff resistance of 16250 in the previous session, successful attempts to break and sustain above the same may lessen the weakness and call for 16500/16750 in the near term. Else, prices may succumb to higher level selling and slippage past 15900 may probably see prices revisiting the recent lows.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16250/16400 |
16500-16250-15900 |
16000/15900 |
|
16540/16750 |
|
15750/15550 |
|
16850/17000 |
|
15400/15350 |
Source: Geojit Comtrade
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