Informist, Tuesday, Dec 28, 2021
By Rahul Dhuri
MUMBAI – Prices of natural rubber in the key markets of Kerala extended Monday’s fall today as the outlook remains weak due to a persistent rise in arrivals amid sluggish demand from bulk buyers and tyre makers.
* The new restrictions imposed against the spread of the Omicron strain of the coronavirus and the resultant concerns over the demand outlook can have a negative bearing on the natural rubber market, said C.J. Augustine, the owner of Idukki-based Chettiparambil Traders.
* Automobile sales in November hit their lowest levels in years, as the industry’s hopes to make up for lost ground during the festival season were dashed by the global semiconductor shortage and muted demand in the two-wheeler segment.
* Certain companies from the tyre and non-tyre sectors have cut production by 20-30%. This also may be a reason for the drop in domestic demand, analysts said.
* In the global market, benchmark rubber contract on the Tokyo Commodity Exchange negated early gains and ended marginally lower as investors booked profits.
* Rubber prices on TOCOM rose in the early trade today, tracking gains in crude oil prices on New York Mercantile Exchange and due to expectations of a rise in demand for rubber from China, one of the largest consumers.
* Demand from China, is likely to rise on account of pre-Lunar New Year demand. China is expected to consume around 500,000 tn each during December and January, according to the Association of Natural Rubber Producing Countries.
* Following are the highlights of today’s trade:
–Today, the widely-traded RSS-4 variety was sold at 162-163 rupees per kg today, down 1 rupee from the previous close.
–The most-active May contract on TOCOM ended at 231.5 yen (150.90 rupees), down 0.3 yen from the previous close.
End
US$1 = 74.65 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Maheswaran Parameswaran
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