MARKET COMMENTARY
Trend stayed bearish in the local as well as in the international market last week. In the local physical market, RSS4 grade rubber was quoted around Rs.118 a kg, while in the futures segment, it posted a monthly loss of about six per cent. Jaded demand from the tire sector as well as weak trend witnessed in the overseas market continued to hammer down prices. In the overseas market, even as the market is entering the lean production phase due to wintering in the major rubber producing countries, subdued demand from the top consumer China and weak global economic outlook weighed on overall market sentiments. In the mean time, the commodity is seen rising on Monday in the major overseas market. TOCOM rubber futures rose nearly two per cent supported by week end gains in crude oil prices though weak manufacturing PMI data from China restricted gains.
MARKET NEWS
⊳Crude rubber inventories at Japanese ports stood at 12976 tonnes as of Jan. 20, down 0.5 percent from 10 days earlier, data from the Rubber Trade Association of Japan showed.
⊳Rubber inventories in the warehouses monitored by SHFE stayed unchanged last week at 164681 tonnes.
⊳the 2nd edition of India Rubber Meet will be held on 04 and 05 March 2015 at Le Meridian Convention Center, Kochi and will be inaugurated by Hon’ble Minister of Commerce and Industry Ms. Nirmala Sitharaman.
⊳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.
⊳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.
TECHNICAL COMMENTRY
RUBBER Mar NMCE
Despite beaching the strong support of 11900 a mild pullback was seen in the last session. However, it requires clearing 12100 ranges upside for an extension of such up moves to 12300 ranges. Inability to clear 12300 or a direct fall below 11900 with volumes could drag prices lower.
Source: Geofin Comtrade
