Informist, Wednesday, Sep 7, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber rose in key markets of Kerala due to fresh demand from domestic stockists after prices slipped to a 19-month low on Monday, traders said.
* However, outlook for rubber remains weak due to tepid demand from bulk buyers amid expectations of a rise in supply, said E. J. Sunny, owner of Ernakulam-based Edattukdi Rubber Traders.
* Domestic supply is likely to be better than expected amid a weak monsoon in Kerala during the first three weeks of August, which is good for uninterrupted harvesting, Sunny added.
* Another factor that could weigh on the natural rubber market in India is the fact that shipping logistics have returned to normal and ocean freight rates have come down sharply, making natural rubber imports faster and cheaper, experts said.
* Futures contracts of natural rubber on Japan’s Osaka Exchange rose today due to value buying after the recent fall in prices. However, a fall in crude oil prices capped sharp gains, analysts said.
* Crude oil is used in making of synthetic rubber.
* The near-term outlook for rubber remains weak due to tepid demand from China as it has imposed fresh COVID-19 lockdowns, which limited demand for the commodity. China accounts for around 42% of the global demand for natural rubber.
Following are the highlights of today’s trade:
–In Kerala, which accounts for nearly 70% of India’s natural rubber output, the widely traded RSS-4 variety was sold at 153-154 rupees per kg, up 1 rupee from the previous day.
–The most active February contract of rubber on the Japanese bourse was up 0.3 yen at 215.3 yen (119.19 rupees) per kg. End
US$1 = 79.90 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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