MARKET COMMENTARY
Weakness prevailed in the local natural rubber market on Tuesday. On NMCE, the commodity remained under selling pressure tracking weakness in the major overseas market and on poor demand. Activities were sluggish in the physical market too. In the international market, meanwhile, on Wednesday, TOCOM rubber futures pared initial losses and inched higher ahead of the key economic releases from China. Gains in crude oil prices after the previous session slump and lean production phase in the key natural rubber growing areas in Asia probably lend lower level support.
MARKET NEWS
⊳ India’s natural rubber output fell 13.5% on year to 50,000 tn in February from 57,800 tn a year ago, according to data from the Rubber Board. Consumption in February was at 82,500 tn, up from 79,375 tn a year ago while imports in rose around 42% on-year to 28,806 tn.
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⊳ The Singapore Exchange (SGX) is in preliminary talks to be part of a Southeast Asian rubber exchange that would bring together the top three producing nations.
⊳Indian Rubber Dealers Federation not to buy RSS4 grade rubber from onwards as a protest against government’s failure to help crisis-ridden rubber sector and has announced indefinite closure of shops from 17th March onwards.
⊳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.
⊳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.
TECHNICAL COMMENTRY
RUBBER Apr NMCE
Despite breaching the support at 12400 in the last day, it managed to culminate the session near the same which have somewhat lessened the bearish expectations and mild upticks seems possible towards 12500-12600 ranges. Still there exist weakness and sustained trades below 12400 with volumes could rejuvenate bears.
Source: Geofin Comtrade
