MARKET COMMENTARY
⊳A rebound in natural rubber prices in the local market was witnessed last day. On NMCE, RSS grade rubber gained more than two per cent following comments from the Union Commerce Minister over the import duty on natural rubber. Commerce Minister said in parliament that the government plans to hike import duty on natural rubber to 25 per cent apart from considering slew of measures to protect the interest of the rubber growers. Quotes in the physical market firmed as well. Gains in the overseas market supported the sentiments as well.
⊳ As the week’s session culminates, natural rubber in the overseas market is seen rather steady. TOCOM rubber futures ticked up, stretching previous session gains. Worries over demand from China continued to ponder upon the market amidst the lean production phase in the major natural rubber growing areas in Asia.
MARKET NEWS
Related Post
⊳Thailand and China are expected to sign a contract in May for China to purchase 2 million tonnes of Thai rice and 200,000 tonnes of rubber, following further discussions between the countries.
⊳A Division Bench of the Kerala High Court on Wednesday observed that the Union government was bound to take into account the plight of rubber farmers while formulating import policies.
⊳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.
⊳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.
TECHNICAL COMMENTRY
RUBBER Apr NMCE
With the breach of the resistance of 12650 in the previous session, there exists mild positive bias. However, now it is mandatory to clear the immediate resistance of 12800 for the continuation of such up moves. Alternatively, a direct fall below 12380 with volumes will puncture the present upbeat sentiments.
Source: Geofin Comtrade
