MARKET COMMENTARY
- A rebound is being witnessed in the natural rubber prices in the international market on Wednesday. TOCOM rubber futures as well as SHFE rubber future rose probably on short covering after four successive days of decline. However, the overall market mood stayed feeble as investors eyed the simmering Greece debt crisis and volatile Chinese market. In the meantime, sharp fall witnessed in natural rubber in the international market on Tuesday was reflected in the local market too. Amidst jaded demand from the tyre sector, steep slump in the major overseas market dragged down the commodity in the local market too. In the physical market, RSS4 graded rubber was quoted at one month low while on NMCE, the grade lost more than one per cent to settle at three week low.
MARKET NEWS
- Kerala State Chief Minister informed the Assembly that government would ensure that small-scale rubber growers with two hectares of land or less will get an assured price of Rs.150 a kg. A total of Rs 300 crore has been earmarked in the state budget for ensuring fair price for rubber which will be utilized for this new scheme. Rubber inventories in the warehouses monitored by SHFE rose 4.1 per cent on weekly basis to 146329 tonnes. Rubber Board has clarified that Kerala and Kanyakumari dist. Of Tamil Nadu would continue to receive subsidy for planting and replanting rubber. Malaysia plans to use 10 per cent of its rubber supply in roads from 2016 as it looks to eat into excess supplies and shore up rubber prices.
- Raising concern over the fall in rubber production for the third consecutive year, the tyre and rubber industries have sought urgent government intervention to stem the slide in domestic production.
- Kerala will constitute a subcommittee to look into various issues related to rubber farmers. The committee’s aim is to see that the financial assistance provided by the Government reaches the farmers effectively.
- Kerala FM says the central government has assured that the state has not been excluded from the rubber subsidy scheme and also added that the state has sought Rs.500 crore for the rubber procurement scheme announced by the state budget.
- The United States imposed duties on certain automobile and light truck tires imported from China after finding they were being dumped at below-market value and unfairly subsidized by Beijing.
Source: Geofin Comtrade
