MARKET COMMENTARY
A mixed trend is being witnessed in the major overseas natural rubber market on Wednesday. TOCOM as well as AFET rubber futures are seen stretching gains while SHFE rubber futures dipped following an initial advance. Despite concerns over demand from the top consumer China, worries over supplies too lend support. Market is heading towards a lean production phase starting from February. In the mean time, lacklusture moves were witnessed in the local natural rubber market on Tuesday. In the physical market, activities were almost nil owing toharthal. On NMCE, in volume less trades, RSS4 ended 0.5 per cent up.
MARKET NEWS
⊳The National Council for Peace and Order (NCPO) and the government will instruct the Government Savings Bank and Krung Thai Bank to provide business operators with soft loans worth 25 billion baht ($768 million) to buy natural rubber from farmers, the Bangkok Post reported, quoting Deputy Prime Minister and Defence Minister PrawitWongsuwon.
⊳The United States is set to slap more duties on imports of tires from China after the Department of Commerce determined they were sold too cheaply in the United States.
⊳Crude rubber inventories at Japanese ports stood at 13,044 tonnes as of Jan. 10, down 2 percent from 10 days earlier, data from the Rubber Trade Association of Japan showed.
⊳Ivory Coast’s natural rubber output for 2014 reached 311,429 tonnes, exceeding a forecast of 296,456 tonnes, the head of the natural rubber association said.
⊳Kerala Chief Minister and Opposition Leader submitted a memorandum before the Prime Minister, urging the latter to take necessary steps to solve the problems faced by rubber sector.
⊳According to International Rubber Study Group, global production of natural rubber is to exceed consumption by 77,000 mt this year before narrowing to 51,000 mt in 2016.
⊳China has approved a new standard for compound rubber that reduces the amount of natural rubber allowed in the formula. The new standard, which will cap natural rubber content in the compound to 88 per cent, down from 95-99.5 per cent previously, will be implemented on 01 July.
⊳According to International Rubber Study Group, global natural rubber demand in 2015 is anticipated to increase 3.1 per cent to 12.3 million tonnes.
TECHNICAL COMMENTRY
RUBBER Feb NMCE
A consolidation is in progress inside 11900-12300 ranges following the bounce back from 11600 levels. A break out from either the sides is mandatory to provide fresh directions.
Source: Geofin Comtrade
