MARKET COMMENTARY
Natural rubber slumped in the international market on Tuesday tracking downtrend in crude oil and other industrial commodities on heightened worries over economic growth in China. TOCOM rubber futures hit a six and a half low earlier today while the September rubber futures on SHFE plunged more than six per cent. In the mean time, in the local market, RSS4 grade rubber has tumbled to its lowest level in more than three months in tandem with the international market amidst sluggish demand. The commodity was seen falling in futures segment as well.
MARKET NEWS
- US auto sales were stronger than anticipated in July with sales rising 5.3 per cent to 1.51 million vehicles.
- Weekly data from SHFE showed rubber inventories in the warehouses monitored by it rising three per cent to 182714 tonnes
- Crude rubber inventories at the Japanese ports stood at 12663 tonnes as of July 10, down 2.9 per cnet from the last inventory date according to the Rubber Trade Association of Japan.
- Vietnam is considering joining International Rubber Consortium Ltd.
- Indonesia Trade Ministry introduced stricter regulation on tire imports in its bid to boost the domestic tire industry.
- According to the Association of Natural Rubber Producing Countries natural rubber production fell by 0.7% (-35,000 MT) to 5.041 million MT in the first half of 2015 as compared to 5.076 million MT in the same period of 2014.
- Thailand is set to lobby Vietnam to join the International Rubber Consortium Ltd (IRCo), a move that would help to stabilise rubber prices.
- Vietnam’s rubber exports in the first half of this year rose 22 per cent on year on year basis to about 421300 tonnes according to the nation’s Customs department.
- A contract for procurement of 80000 tonnes of Thai rubber us planned to be finalized by September 2015 according to Russian Minister of Industry.
- According to preliminary trade data released by the China’s General Administration of Customs rubber imports by the country rose 17.9 per cent to 330000 tonnes in June.
- Malaysia’s natural rubber (NR) production in May 2015 dropped 11.3% to 38,923 tonnes compared with the same period last year, according to the country’s Statistics Department.
[embeddoc url=”https://drive.google.com/file/d/0BzrsaGiMYhEkaGRvS3VLcXJQS1E/preview” viewer=”drive”]