MARKET COMMENTARY
- Natural rubber prices in the Indian market are seen steadying for the last few days. The underlying market fundamentals are mixed, keeping prices in narrow ranges. In the physical market, quotes for RSS4 grade rubber ruled flat near Rs.163/kg while in NMCE, the benchmark January rubber futures has been varying between Rs.16800-16500/100kg for last three sessions. Even as market is in the midst of peak production period, uptrend seen in the international market, gap thinning out between the local and overseas natural rubber prices as well as demand from the major natural rubber consuming industries is providing firm support.
- Continuing its upward journey, natural rubber stretched the earlier gains in the global market on Tuesday. The trend setting TOCOM rubber futures touched a seven month high after yen weakened further and on reduced concerns over US ‘fiscal cliff’. Moves by China to impose reduced import tax on two types of natural rubber aided the sentiments too. However, burgeoning stockpiles in the top consumer remains a matter of great concern.
TECHNICAL VIEW
- Ivory Coast expects to produce 300,000 metric tons of rubber in 2013 as it plans to raise funds for developing new production zones of the crop.
- China will cut import taxes on two types on natural rubber for 2013. Import tariff for smoked rubber sheets will be set at 20 per cent with a cap at 1200 Yuan a tonne and for TSNR, it will be lowered to a maximum of 1200 Yuan a tonne.
- Rubber inventories in the warehouses monitored by SHFE rose 1.2 per cent to 95927 tonnes the previous week.
- The world’s top three rubber producers have agreed to keep up a policy of cutting exports, but see no need for additional steps to support prices, according to a senior Thai government official.
- India’s natural rubber imports in November jumped 41 percent from year ago to 22,748 tonnes as lower prices in overseas markets prompted tyre makers to raise imports. The output during the month eased to 93,500 tonnes from 94,400 as heavy rainfall in top producing Kerala state had hurt tapping for few days, it said.
TECHNICAL VIEW
RUBBER Jan NMCE
A brief consolidation is being witnessed in around 16800-16500 ranges. While it seems that some more upsides are in store in coming days, it requires clearing 16960 for a rise possibly towards 17100/17260 or more. Alternatively, consistent trades below 16500 is likely to call for 16370/16200 levels, another leg of bearish moves may be seen below 15950.
Source: Geojit Comtrade
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