Informist, Thursday, Apr 28, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber were down in the key spot markets of Kerala as demand from tyre makers and bulk buyers remained weak. However, tight supply in the market cushioned the fall in prices, traders said.
* The automobile industry is facing various challenges, including high commodity costs, shortage of semiconductors, a rise in COVID-19 cases, and disruptions caused by the Ukraine-Russia war, said Raju Varghese, the owner of Polachirayil Traders based in Kottayam, Kerala.
* Supply remains tight as tapping has slowed in Kerala due to a rise in temperatures, market participants said.
* India’s domestic automobile sales in 2021-22 (Apr-Mar) were the lowest in the last 10 years, as low demand for two-wheelers and limited production of passenger vehicles due to the shortage of semiconductors weighed on sales.
* Futures contracts of natural rubber on Japan’s Osaka Exchange ended in the green today due to weakness in the yen against the dollar. A weak Japanese currency makes the yen-denominated rubber cheaper for buyers holding other currencies.
* Concerns over global supply due to the lean tapping season also supported rubber prices, said analysts.
* The overall trend remains positive as supply of raw material is expected to tighten in the coming months, because most producing countries are entering the off-season for tapping, said the Association of Natural Rubber Producing Countries.
Following are the highlights of today’s trade:
–The widely-traded RSS-4 variety was sold at 164-165 rupees per kg, down 1 rupee from the previous day.
–The most-active October contract of rubber on the Japanese bourse ended 0.8 yen higher at 248.7 yen (145.84 rupees) per kg.
End
Edited by Pranav S. Joshi
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Source: Cogencis
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