MARKET COMMENTARY
Declines in the overseas market coupled with poor demand continued to pressurize natural rubber in the local market. On Monday, NMCE rubber futures resumed to decline with the near month March rubber futures nearly one per cent, while in the physical market activities were sluggish owing to a statewide strike by the rubber dealers demanding government intervention to prop up rubber prices. In the mean time, on Tuesday, natural rubber prices in the overseas market are seen rising following the earlier declines. TOCOM rubber futures pared initial gains and inched up. SHFE and AFET futures gained as well.
MARKET NEWS
⊳Indian Rubber Dealers Federation not to buy RSS4 grade rubber from today onwards as a protest against government’s failure to help crisis-ridden rubber sector.
⊳ The 2015 World Rubber Summit jointly organized by International Rubber Study Group and SingEx Exhibitions to be held in Singapore on March 24 and 25.
⊳ Vietnam has been expanding its rubber export markets to India and Japan, reducing its reliance on China where demand for the commodity has fallen, the Vietnam Economic Times newspaper reported, citing industry sources.
⊳Rubber inventories in the warehouses monitored by SHFE declined 5.1 per cent to 156503 tonnes.
⊳According to ANRPC, gobal natural rubber output could jump over five per cent this year after posting its first drop in nearly half-decade 2014 as a price rebound prompts more tapping in key producers Thailand, Indonesia, Vietnam and India.
⊳The two-day India Rubber Meet 2015, organised jointly by the Rubber Board and other stakeholders in natural rubber, will conclude today in Kochi.
⊳India’s natural rubber production in 2015-16 (Apr-Mar) is likely to rise 12% on-year to 750,000 tn, said Rubber Board chairman (additional charge) A. Jayathilak. In the current FY, natural rubber output is estimated at 670,000 tn, down 13.4% from the 774,000 tn produced in 2013-14.
⊳In the Bandung meet of IRTC and IRCo, the members discussed the supply-demand scene, price stabilisation, ways to raise rubber consumption in each country, and ways to strengthen cooperation among other ASEAN rubber-producing countries such as Cambodia, Laos, Myanmar, and Vietnam but fell short of formulating specific and detailed efforts to support the price.
TECHNICAL COMMENTRY
RUBBER Apr NMCE
As long as support at 12400 holds downside, pullback may be anticipated to 12650 or even more to 12800. However, a direct fall below 12400 with sturdy volume could intensify weakness and call for 12250/12150 or more
Source: Geofin Comtrade
