MARKET COMMENTARY
In the week gone by, natural rubber prices traded firm in the Indian market. Regardless of downtrend in the overseas market and weak cues from the economic front, price of the commodity used in making tyres clung near four month high as arrival remained limited. RSS4 grade was trading near Rs.167-168 a kg in the ready market as anticipation of further rise in prices prompted growers to hold back their produce. On NMCE, the grade ended the week slightly lower. However, activities were lethargic owing to consecutive holidays. Downtrend prevailing in the overseas market and widening gap between the local and international natural rubber prices is opening room for higher imports which is likely to cap gains. Worries over demand and burgeoning stockpiles in China, world’s largest consumer of natural rubber is pressurizing prices to move south.
MARKET NEWS
Rubber inventories in the warehouses monitored by SHFE rose 1.5 per cent to 117,696 tonnes last week.
Arunachal Pradesh govt allots Rs.10 crore to cultivate rubber in the state
Thailand’s February rubber exports gain 0.2% on-year to 288,333 tons according to Ministry of Commerce. ⊳The Thai cabinet on Tuesday approved an injection of US$3.3 million (Bt109.89 million) into the tripartite rubber consortium for rubber price stability in the global market.
Tyre manufacturing major Michelin expects to commence production at its new facility near Chennai by mid-2013.
TOCOM March rubber futures expired with 406 lots being delivered against 511 lots in the previous month.
China’s Rubber Industry Association sees synthetic and natural rubber consumption rising 7.79 per cent and 7.25 per cent respectively in 2013
According to Vietnam’s Ministry of Agriculture and Rural Development, the nation’s rubber exports for first three months of 2013 seen at 200,000 tons, down 37% vs same period last year.
TECHNICAL VIEW
RUBBER Apr NMCE
Broad Trend: Seen weak, yet successful attempts to clear 17050 could lessen the weakness.
Near Term: Prices held support near 16500 and bounced back after retreating from 16890 during the previous week. Prices likely to edge higher as long as 16400 holds the downside support, but requires clearing 17050 to extend gains. Inability to clear the same may call for a turnaround in prices. A direct fall below 16400 will induce major weakness. TURNAROUND
|
Resistances |
LEVELS |
Supports |
|
16770/16860 |
17050-16400-16200 |
16500-16400 |
|
16950/17050 |
|
16250/16140 |
|
17200/17400 |
|
16050/15900 |
Source: Geojit Comtrade
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