MARKET COMMENTARY
- Pressured by weak fundamentals, RSS4 in the physical as well as futures market dropped on Wednesday after consolidating for the past few sessions. In the spot market, prices slipped to a one and a half week low of Rs.161 a kg while NMCE rubber futures shed over two per cent. Even as the local natural rubber prices are on a discount to that in the major overseas market, with the market in the middle of the peak production season, muted demand from the tyre sector and higher imports hurt prices. A retreat in natural rubber prices in the international market during the previous session too weighed on the sentiments.
- With the talks over the US budget deal turning sour, natural rubber in the global market fell on Thursday along with other commodities and equities. TOCOM rubber futures stepped lower from the seven-month highs falling around 1.5 per cent while SHFE and AFET rubber futures are seen extending the previous day’s losses.
MARKET NEWS
- According to the International Rubber Study Group, the World Rubber Summit 2013 will be held at Raffles City Convention Center in Singapore on May 21-23, 2013.
- The Kerala State Cooperative Rubber Marketing Federation (RubberMark) has called for steps to impose a total ban on import of rubber as well as encouraging exports by extending subsidy.
- Ivory Coast expects to produce 300,000 metric tons of rubber in 2013 as it plans to raise funds for developing new production zones of the crop.
- China will cut import taxes on two types on natural rubber for 2013. Import tariff for smoked rubber sheets will be set at 20 per cent with a cap at 1200 Yuan a tonne and for TSNR, it will be lowered to a maximum of 1200 Yuan a tonne.
- The world’s top three rubber producers have agreed to keep up a policy of cutting exports, but see no need for additional steps to support prices, according to a senior Thai government official.
TECHNICAL VIEW
RUBBER Jan NMCE
With prices breaching the consolidation support of 16500 in the previous session, a fall was seen towards 16100 regions. For the day, it is likely to continue the prevailing negative bias; however, 15900 will be a crucial level downside for further directional moves.
Source: Geojit Comtrade
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