UPTREND in RUBBER PRICES

Rubber rises on fresh buying
Kottayam: The physical rubber market improved further on Tuesday. The prices moved up on fresh buying and short covering catalysed by the sharp gains in the international indices.

Declines in the domestic futures put pressure on sheet rubber on late trades but it managed to finish higher at Rs 118 (117) a kg amidst low supplies.

Futures decline
RSS 4 declined at its December futures to Rs 120.20 (121.46), January to Rs 122.48 (123.90), February to Rs 124.30 (126.05) and March to Rs 126.14 (127.14) a kg on National Multi Commodity Exchange (NMCE). RSS 3 bounced back at its November futures to ¥238 (¥230) (Rs 124.62), December to ¥242.9 (¥237), January to ¥242 (¥237), February to ¥243.8 (¥239.6), March to ¥245.6 (¥241.5) and April to ¥247.5 (¥243.4) a kg during the day session on Tokyo Commodity Exchange (TOCOM).The December futures closed at ¥243.2, January at ¥240.3, February at ¥243, March at ¥244.6 and April at ¥246.6n a kg on late trades. RSS 3 closed higher at Rs 124.65 (122.91) a kg on Singapore Commodity Exchange (SICOM). The grade flared up to Rs 123.65 (120.73) a kg at Bangkok. (BL)
http://www.thehindubusinessline.com/2009/11/25/stories/2009112550751600.htm
Auto sector growth to push up demand for rubber
Kottayam: The progress achieved by the global automobile industry during the second lap of the current year gave a fresh impetus to the demand for rubber and it continues to scale further highs.

The weather changes due to global warming in most of the rubber producing countries have affected production. According to the assessment of the Association of Natural Rubber Producing Countries (ANRPC), rubber production will lower by 6 per cent this year.

Major consumers
China is the major rubber consumer and requires maximum rubber for its use now, since its stock position is very low. The US and the European countries are procuring large quantities of rubber. The industrial progress in Japan has also enhanced consumption in that country.

India, which overtook Japan in rubber consumption, made a record import during the current fiscal. The untimely rains and floods that followed reduced the availability of rubber from Thailand and interrupted the movement of rubber there. Once the rains subside, winter would commence.

According to weather forecasts, winter will be severe this year. This will also adversely affect rubber production. (BL)
http://www.thehindubusinessline.com/2009/11/25/stories/2009112550741600.htm