MARKET COMMENTARY
⊳A rebound was witnessed in the local natural rubber market on Thursday. On NMCE, the commodity bounced back after declining for the three successive days, ending the previous day’s session more than one per cent higher. In the physical market too, quotes for RSS4 were tad up. According to sources, even as demand from the tyre sector stayed subdued, short covering and gains in the major overseas market improved the sentiments.
⊳As the week’s session culminates, positive moves are being witnessed in the overseas natural rubber market. TOCOM rubber futures rose more than one per cent, stretching the previous session gains while SHFE and AFET rubber futures jumped more than two per cent respectively. Amidst low production phase in the major natural rubber growing countries, rise in oil prices bolstered prices.
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
The bounce back that is in progress after taking support at 12200 may continue towards 12550 or more to 12700 ranges. However, another round of bullish wave may be seen only above 13000 ranges. Alternatively, a direct fall below 12200 may lead prices to 12050 or more.
Source: Geofin Comtrade
