MARKET COMMENTARY
⊳Sentiments were muddled in the local natural rubber market on Wednesday. While quotes in the physical market were seen inching up, RSS4 in the futures market slumped more than one per cent. Upticks seen in the major overseas market lend firm support to the commodity in the physical market. ⊳A retreat is being witnessed in natural rubber prices in the major overseas market. TOCOM rubber futures declined on Thursday after rising for the last few days. Overnight declines in crude oil prices amidst persisting worries on demand from China probably pondered upon the market. However, there are apprehensions over supplies as winteringis approaching in the natural rubber producing belt in Asia, which is to lend support to the falling prices.
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
While a consolidation is in progress inside 11900-12400 ranges, prices are currently hovering near the support range of 11900 and break below the same with volumes could call for another round of liquidation. However, a bounce back may be seen if it manages to hold the support at 11900
Source: Geofin 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)
