Informist, Friday, Dec 16, 2022
By Mridula Lathan
MUMBAI – Prices of natural rubber fell marginally today in the key markets of Kerala on low demand from bulk buyers amid likely higher production, local traders said.
* Demand from tyre makers, which accounts for 70% of natural rubber consumption, has declined. Along with that, demand from other rubber product makers such as glove manufacturing companies has also been affected after the slowing down of pandemic in India, said Santosh Kumar, executive director of Harrisons Malayalam.
* Weak demand from tyre making companies is mainly due to their sufficient stocks of the commodity, mostly imported. This has also contributed to the decline in prices in the domestic market, he said.
* The price of rubber in the international market may also influence prices in the domestic market.
* As it is the peak rubber tapping season, which extends till January, production is seen higher, said C.J. Augustine, the owner of Chettiparambil Traders.
* Futures contracts of natural rubber were largely steady on Japan’s Osaka Exchange as the market has already reacted to the current events, said an analyst. Prices are in a range right now, and significant movements may occur only after any fresh news.
* However, market participants are of the opinion that demand concerns from China still prevails in the market. China is the largest consumer of the commodity.
Following are the highlights of today’s trade:
–Widely-traded RSS-4 variety was sold at 139-140 rupees per kg, down 50 paise from the previous day.
–The most-active May contract on the Osaka Exchange was down 0.1 yen at 230.4 yen (139 rupees) per kg.
End
Edited by Aditya Sakorkar
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