Informist, Wednesday, Mar 2, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber hit a three-week high in the key markets of Kerala today due to firm demand from stockists and low supply as peak tapping season has ended, traders said.
* Concerns about supply persist as the peak tapping season has ended. However, lukewarm demand from tyremakers capped the gains in prices of rubber, said Thaha Mohamed, the owner of Sara Traders based in Kottayam, Kerala.
* Kerala accounts for the bulk of rubber production in India.
* Domestic sales of vehicles in February do not indicate an overall positive trend. The stagnant demand for two-wheelers is a major concern, industry experts said.
* In the global market, rubber contracts on the Tokyo Commodity Exchange ended higher due to firm demand from bulk buyers and gains in the benchmark crude oil contract on New York Mercantile Exchange, analysts said.
* Natural rubber prices take cues from crude oil, as the latter is used to manufacture synthetic rubber.
* In China, activities in the service sector grew at a faster pace in February. China represents around 43% of the global demand for natural rubber. China’s manufacturing activity unexpectedly rose during February. The Manufacturing Purchasing Mangers Index rose to 50.2 in February as against 49.9 expected and 50.1 recorded in January
* Higher raw material prices, seasonal low supply of natural rubber, supply disruptions caused by the floods in south Thailand and East-Coast Malaysia have raised output concerns. Thailand and Malaysia are amongst the major rubber producers across the globe.
* Crude oil prices hit an over eight-year high on New York Mercantile Exchange in Asian trade today as countries opted to avoid supplies from Russia, which put more stress on an already tight market, experts said.
Following are the highlights of today’s trade:
–The widely traded RSS-4 variety was sold at 164-166 rupees per kg, up 1 rupee from the previous day.
–The August contract on the TOCOM ended at 260.1 yen (170.86 rupees) per kg, up 0.2 yen from the previous close. End
Edited by Maheswaran Parameswaran
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