RSS 4 grade rubber prices have fallen 14200 per 100 kg to Rs 13850 per 100 kg levels so far this month. At National Multi Commodity Exchange (NMCE), May futures closed at Rs 13865 per 100 kg while June rose to Rs 1403.
KOTTAYAM, INDIA (Commodity Online): India rubber prices remain weak despite procuremenet measures as oversupply fears in global markets continue to impact investor sentiments, analysts said.
RSS 4 grade rubber prices have fallen 14200 per 100 kg to Rs 13850 per 100 kg levels so far this month. At National Multi Commodity Exchange (NMCE), May futures closed at Rs 13865 per 100 kg while June rose to Rs 14030, July fell marginaly to 14105, August rose to 14180 and September fell to 13997 per 100 kg.
In global markets, October delivery steel reinforcement bar fell to its lowest close since inception of the contract in 2009. This largely reflects the concern about economic growth. TOCOM Rubber futures also fell to a four-and-a half year trough. RSS 3 (spot) inched up to Rs 120.79 (Rs 120.68) a kg at Bangkok. May futures closed at ¥197.4 (Rs 116.37) on the Tokyo Commodity Exchange.
Spot rubber rates Rs /kg were: RSS-4: 138.50 (138); RSS-5: 135 (135); Ungraded: 131 (131); ISNR 20: 130 (130) and Latex 60%: 112 (112). Bloomberg reported that innventories in China, the biggest rubber consumer, are at a nine-year high, according to Bloomberg
Thailand, the biggest producer, this week reaffirmed a pledge to sell 200,000 tonnes from its stockpiles, exacerbating a global rubber surplus. Another factor possibly depressing Tokyo futures is that they are denominated in yen, which has been stronger of late.
For the rubber industry, 2014 may turn out to be year of slow growth even as a modest recovery in automotive demand in US and Europe is expected. However, the Asian market that constitutes 70% of rubber demand continues to be pulled back by growth concerns.
Source: Commodity Online
