Informist, Wednesday, Apr 27, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber rose in the key spot markets of Kerala due to a rise in demand from domestic stockists even as supply remains tight, traders said.
* Demand from domestic stockists rose after the recent fall in prices. However, tepid demand from tyre manufacturers capped the rise in rubber prices, said E.J. Sunny, the owner of Edattukdi Rubber Traders based in Ernakulam, Kerala.
* The automobile industry is facing various challenges, including high commodity costs, shortage of semiconductors, a rise in COVID-19 cases, and disruptions caused by the Ukraine-Russia war, Sunny added.
* India’s domestic automobile sales in 2021-22 (Apr-Mar) were the lowest in the last 10 years, as low demand for two-wheelers and limited production of passenger vehicles due to the shortage of semiconductors weighed on sales.
* Futures contracts of natural rubber on Japan’s Osaka Exchange negated early losses and ended in the green today tracking gains in crude oil prices on the New York Mercantile Exchange amid global supply concerns for rubber, analysts said.
* Natural rubber prices take cues from crude oil, as the latter is used to make synthetic rubber.
* The overall trend for rubber remains positive as raw material supply is expected to tighten in the coming months as most producing countries are entering the off-tapping season, said the Association of Natural Rubber Producing Countries.
* Rubber prices were down in early trade on expectations of a fall in the global demand for the commodity, said analysts.
Following are the highlights of today’s trade:
–The widely-traded RSS-4 variety was sold at 165-166 rupees per kg, up 1 rupee from the previous day.
–The most-active October contract of rubber on the Japanese bourse ended 2.5 yen higher at 250.1 yen (149.40 rupees) per kg.
End
Edited by Maheswaran Parameswaran
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Source: Cogencis
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