MARKET COMMENTARY
Sentiments were muddled in the local as well as in the overseas market on Monday. With the underlying market fundamental mixed, the commodity was held in tight ranges. In the local market, spot prices for RSS4 remained in the vicinity of the five year lows hit last week while NMCE rubber futures inched lower. Poor demand from the tyre sector continued to restrict advances while government support measures as well as limited arrivals despite it being the peak production phase lent lower level support. In the international market meanwhile, natural rubber prices are in red, stretching the previous day’s losses. TOCOM rubber futures inched lower on demand woes. Worries over demand from China continued to haunt the market, hammering down prices. Still, attempts by the top natural rubber producing countries to prop up prices and concerns over supplies lend lower level support.
MARKET NEWS
⊳ Government appointed special sub-committee likely to meet this week to formulate the much awaited National Rubber Policy. The government panel is also likely to formulate measures aimed at boosting domestic demand for rubber and somehow protect farmers from the steep fall in prices.
⊳ China’s natural rubber imports in October stood at 300000 tonnes.
⊳ Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.6 percent to 174833 tonnes last week.
⊳ Rubber Mark and Market Fed to buy rubber by paying Rs.5 a kg above the Rubber Board rates.
⊳ Reports says Thailand Rubber Estate Organisation bought 400 tonnes of natural rubber to support falling prices.
⊳ Inventories in Qingdao, China’s main rubber-trading hub, -3.1% to 139,400 mt: Qingdao International Rubber Exchange Market.
⊳ Japan-based Yokohama Rubber today says it has started commercial production at its first manufacturing plant in India at Bahadurgarh, Haryana with an investment of over Rs 300 crore and the unit has an installed capacity of 2,000 tyres per day.
⊳ Thailand, Indonesia and Malaysia likely to meet on Nov. 20-21 to discuss plans to set prices together and reduce supply.
⊳ Indonesian Rubber Association makes a second appeal to its members to impose strict limit on sales until the second quarter of 2015
TECHNICAL VIEW
RUBBER Dec NMCE
Even as the broad trend stays bearish, as long as the support at 11450 remains undisturbed, the possibility of a pullback to 12100 ranges remains open. However, it is mandatory to break and sustain above 12250 to lessen the prevailing weakness. Else it may succumb to higher level selling.
Source: Geojit Comtrade
![[Geojit Comtrade] Daily report on Natural Rubber: December 4, 2012](https://img.globalrubbermarkets.com/2024/08/geojit-comtrade-daily-report-on-natural-rubber-december-4-2012.jpg?resize=120%2C86&ssl=1)
