MARKET COMMENTARY
In the weak gone by, the overall trend stayed bearish in the local natural rubber market with RSS4 in the physical market plunging to its weakest since mid-May 2010. With market currently in the midst of the peak production period, muted demand from the tyre sector continued to exert downward pressure on prices. The benchmark January rubber futures in NMCE registered a weekly decline of over four per cent. A firm trend being witnessed in natural rubber prices in the global market probably failed to raise the appeal of the local produce. Moreover, market might have been also under liquidation pressure ahead of the Christmas and New Year holidays.
On Monday, natural rubber prices in the international market stayed mostly flat. The trend setting TOCOM exchange remained closed while the most active May rubber futures in SHFE moves mostly steady. July rubber futures in AFET were un-traded. Concerns over US fiscal cliff continued to weigh on the overall market sentiments.
MARKET NEWS
The Automotive Tyre Manufacturers Association has opposed imposing import curbs on natural rubber, saying that it will be counter productive.
Rubber inventories in warehouses monitored by SHFE rose 1.8 per cent 97679 tonnes the previous week.
TOCOM December rubber futures expired with 288 lots (1440 tonnes) being delivered against 149 lots being delivered in November.
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.
TECHNICAL VIEW
RUBBER Jan NMCE
Price has been moving sideways after bouncing back from 15700 levels in the previous week. While the broad trend remains weak, it requires clearing either 16200 upside or 15700 downside for further directional moves.
Source: Geojit Comtrade
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