Informist, Wednesday, Nov 23, 2022
By Rahul Dhuri
MUMBAI – Prices of rubber were flat in key markets of Kerala today, traders said. Gains tracking international prices were offset by overall tepid demand in the domestic markets.
* In the global market, future contracts of natural rubber rose on Japan’s Osaka Exchange today, following a rise in crude oil futures on the New York Mercantile Exchange. The prices take cues from crude oil as the latter is used to make synthetic rubber.
* However, the near-term outlook for domestic rubber remains weak due to tepid demand from tyre-making companies, as they are relying more on imported rubber, which is affecting demand and prices of domestic rubber, traders said.
* There are concerns over demand due to repeated delays in the recovery of automobile production, said E.J. Sunny, a trader based in Ernakulam. Natural rubber is a key raw material for the tyre industry. Nearly 65% of natural rubber is consumed by the automobile industry.
* Tyre-manufacturing companies in India no longer face any uncertainty in accessing natural rubber from overseas, said Raju Varghese, owner of Polachirayil Traders based in Kottayam.
* India is among the world’s largest producers of rubber, and the third-largest consumer of the commodity.
* A rise in the supply of natural rubber is also seen weighing on rubber prices. Supply is expected to be higher as it is the peak tapping season for the commodity globally, said Thaha Mohamed, owner of Sara Traders based in Kottayam.
Following are the highlights of today’s trade:
–The widely-traded RSS-4 variety was sold at 147-148 rupees per kg, flat from the previous day. Kerala accounts for nearly 70% of India’s natural rubber production.
–The most-active April contract of rubber on the Osaka Exchange was up by 0.4 yen at 215.6 yen (124.86 rupees) per kg. End
Edited by Manisha Baxla
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