![[Geojit Comtrade] Daily report on Natural Rubber: December 5, 2012](https://img.globalrubbermarkets.com/2024/08/low-natural-rubber-continuation-of-the-interval-convergence-finishing.jpg?resize=336%2C252&ssl=1 "[Geojit Comtrade] Daily report on Natural Rubber: December 5, 2012")
MARKET COMMENTARY
- Bearishness prevailed in the local natural rubber market and RSS4 grade rubber continued its journey south, with prices in the physical market declining for the eighth consecutive day. NMCE rubber futures lost over one per cent on Tuesday while the grade tumbled to its weakest since early-September 2010 in the spot market, pressured by lacklustre off-take from the major natural rubber consuming industries amidst the peak production season. Production season usually starts from October in India and peaks during December-January period. Also, stocks in the NMCE are seen rising.
- TOCOM rubber futures are seen resuming rising following an initial dip while SHFE extended the previous session gains on Wednesday even as US fiscal woes capped gains. Vietnam, the fourth largest natural rubber exporter, considering joining the ITRC probably supported the sentiments.
TECHNICAL VIEW
- Vietnam, the world’s fourth-largest rubber exporter, may join the International Tripartite Rubber Council of top producing nations, strengthening the group which has agreed to cut shipments to support prices.
- US auto sales climbed 15 per cent in November to 1.14 million vehicles.
- According to China Rubber Industry Association, China’s total tire output will increase 5.9% to 483m pieces in 2012.
- Crude rubber inventories at Japanese ports eased from two month high earlier to 6520 tonnes by November 20 from 6739 tonnes 10- days before, according to Rubber Trade Association of Japan.
- Rubber inventories in the warehouses monitored by SHFE rose 3.1 per cent to 93116 tonnes last week.
- According to ANRPC, China’s Jan.-Nov. consumption rose 6.7% to 3.51million tonne and its natural rubber consumption this year is anticipated to be 3.83 million tonne from 3.77million tonne.
- Rubber stocks held by Thai Govt stand at 170000 tonnes and are expected to rise to 410000 tonnes by March-end.
TECHNICAL VIEW
RUBBER Jan NMCE
Downside moves were held near the falling trend line support in previous session. Even as the trend stays weak, it requires a convincing violation of the same to continue the prevailing downtrend, possibly towards 16200/15950 or more. Inability to move past the falling trend channel support is likely to call for a pullback initially to 16800 or more to 16960/17100 levels.
Source: Geojit Comtrade
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