MARKET COMMENTARY
Natural rubber prices are seen bouncing back in the major overseas market. On Thursday, the commodity on the key TOCOM and SHFE rubber futures inched up, taking a breather from the recent slide. The benchmark November rubber futures on TOCOM exchange gained more than two percent, moving further away from its three month lows supported by firmer oil prices and on bargain hunting. In the local market on Wednesday, indecisive moves were seen in the futures market on Wednesday, while RSS 4 grade rubber traded firm in the spot market. Limited supplies to the market lend support
MARKET NEWS
The Rubber Board has advised growers tapping once a week to cut production cost, the board said in a release today. “In rubber holdings, a major share of expenditure is for tapping, and there is a shortage for tappers also,” the release said. The advisory is in the wake of prevailing low prices of rubber in domestic markets, the Board said.
China may open up its commodities futures markets to overseas and financial investors, the country’s securities regulator said, as the world’s top consumer of many raw materials seeks to play a larger role in setting global commodities prices.
JK Tyre & Industries Ltd has set up a trading arm in Singapore to facilitate natural rubber imports, its Chairman and Managing Director Raghupati Singhania said.
Natural rubber output from the world’s top producing countries will see a nominal rise of about 1.3% in the calendar year 2016 to 11.2 mln tonne as a long phase of low prices has hurt planting of the cash crop, Sheela Thomas, secretary-general of the Association of Natural Rubber Producing Countries, said.
China’s rubber imports (both natural and synthetic) in April amounted to 500000 tonnes, down 7.4 percent from a month earlier.
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Geofin Comtrade
