BANGKOK/KOTTAYAM,INDIA (Commodity Online): With rubber market remaining weak and rubber futures at Tokyo Commodity Exchange (TOCOM) still trading near to five-year lows, top rubber producing nations are expected to meet next week to discuss measures to support prices.
In India, RSS-4 grade prices have fallen to Rs 12050 per 100 kg while at TOCOM prices have climbed back from lows on Tuesday with March contract up by 3Yen at 179.4 Yen per kg. All contracts are trading up by 3-4 Yen per kg.
Analysts said that lower crude oil prices and consecutive holidays have kept the market sluggish.
Association of Natural Rubber Producing Countries (ANRPC) has estimated rubber production among its member countries to rise 0.1% in 2014 to 11.18 mn tons.
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-Rubber exports from Thailand declined 1.5 per cent to 259674 tonnes in August on YoY basis.
-Rubber inventories in the warehouses monitored by SHFE rose 2.2 per cent to 166266 tonnes last week.
– Indonesian Rubber Association is seeking to put a floor under prices at $1.5 a kg and has written and sent circulars to its members not to sell rubber is prices plunges below the same.
A supply glut and weak demand from main consumer China drove international rubber prices to the weakest level since 2009 last Friday.
Thai and Malaysian rubber producers said last week they supported an Indonesian proposal to set a minimum price, but have made no announcements on how they plan to put a floor under the market.
Previous efforts to shore up prices by the three major Southeast Asian producers — who account for more than 70 per cent of global natural rubber output — have had little success even when they involved concrete measures such as supply cuts. Indonesia, Thailand and Malaysia, grouped under the International Rubber Consortium, last acted jointly in 2012-2013, agreeing to cut exports by 300,000 tonnes, or about three per cent of 2012 global output.
– Commodity Online
