MARKET COMMENTARY
Sentiments were rather mixed in the Indian natural rubber market on Tuesday. RSS4 in the physical market traded fairly steady though a dip in NMCE rubber futures weighed on the sentiments. The most active January rubber futures on NMCE inched lower after hitting a one week high on Monday. The underlying market fundamentals are mixed. While the demand from the tyre sector continued to stay subdued, concerns over fall in domestic output and narrowing differences between prices in the local and international market provided firm lower level support.
TOCOM rubber futures are seen inching lower for the second consecutive day on Wednesday weighed down by increasing stockpiles in China and Japan. Strengthening yen too added pressure on the commodity.
MARKET NEWS
Rubber inventories in Qingdao, China’s main hub for the commodity, advanced for a third week to 282,700 tons from 276,300 tons at the end of November, according to the Qingdao International Rubber Exchange.
Crude rubber stockpiles held at Japanese warehouses rose 16.7 percent to 10,875 tons on Nov. 30, the highest level since July 10, according to data from the Rubber Trade Association of Japan.
According to a report appeared on Bloomberg ,China, the largest rubber consumer, bought 87,200 metric tons for government stockpiles
Bridgestone to invest $63 million to expand tyre manufacturing unit in Brazil. Increased production expected to start in May 2015 and the company is to produce additional 2,100/day passenger car radial tires and light truck radial tires.
The World Rubber Summit 2014 is to be held at the Marina Bay Sands Expo & Convention Centre in Singapore, on May 19-21, 2014.
According to Office of the Rubber Replanting Aid Fund, Thailand to restart collecting fees on rubber shipments from January after a 4- month exemption.
Natural rubber imports by India in November declined 4.57 per cent to 22872 tonnes on year on year basis. Production dropped as well, by 7.1 per cent to 91000 during the same period.
TECHNICAL VIEW
RUBBER Jan NMCE
Indecisive moves were witnessed in the previous session after a sharp short covering rally at the start of the week. Now, it requires clearing and sustain above the stiff resistance of 15950 for further upsides. Else, corrective dips to 15650/15500 ranges cannot be ruled out.
TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
15800/15950 |
15950-15500 |
15650-15580 |
|
16050/16150 |
|
15470/15350 |
|
16250/16500 |
|
15200/15100 |
Source: Geojit Comtrade
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