MARKET COMMENTARY
Sentiments were muddled in the local natural rubber market on Tuesday. In the physical market, RSS4 grade rubber traded firm buoyed improved demand amidst low production phase. In the mean time, on NMCE, the commodity stretched losses for the second consecutive day. Declines in the major overseas natural rubber market weighed on sentiments. In the international market, on Wednesday, a mixed trend is being witnessed as the trend setting TOCOM exchange stayed closed on account of National Foundation Day. SHFE rubber futures inched up while AFET rubber futures extended losses. Also, activities are likely to slowdown in coming days as China New Year holidays starts.
MARKET NEWS
⊳According to the Rubber Board, natural rubber imports by India jumped 47 per cent in January to 30441 tonnes on year on year basis.
⊳Rubber inventories in the warehouses monitored by SHFE rose 0.1 per cent last week to 164821 tonnes.
⊳Media report says India likely to raise import duty on natural rubber to 30 per cent from 20 per cent to protest the domestic growers from cheap imports and check further decline in prices. The hike may to be announced in the next Union Budget.
⊳Crude rubber inventories at Japanese ports stood at 12976tonnes as of Jan. 20, down 0.5 percent from 10 days earlier, data from the Rubber Trade Association of Japan showed.
⊳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. NirmalaSitharaman.
⊳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.
TECHNICAL COMMENTRY
RUBBER Mar NMCE
12400-12340 ranges seem considerably a good support range, which if held down side could see a bounce back. However, it is mandatory to clear the recent high to continue the positive momentum. Slippage past 12400-12340 is likely to induce weakness.
Source: Geofin Comtrade
