Speculative buying keeps spot rubber prices firm

Speculative buying keeps spot rubber prices firm

Kottayam, April 14

Physical rubber prices firmed up further on Wednesday. The market made smart gains mainly on speculative buying as the sentiments were bullish amidst tight supplies and higher global rates. Sheet rubber improved to Rs 164.50 from Rs 163.50 a kg, while the volumes were extremely low and there were buyers for the grade up to Rs 165 during closing hours.

Futures improve

RSS 3 improved at the April futures to ¥366.5 (¥365) (Rs 173.20), May to ¥361.4 (¥358.5), June to ¥354.8 (¥352.7), July to ¥347.6 (¥345.5), August to ¥337.8 (¥335.3) and September to ¥329.8 (¥328) a kg during the day session on Tokyo Commodity Exchange (TOCOM).

The April futures closed at ¥366.5, May at ¥362, June at ¥357, July at ¥350, August at ¥338.6 and September at ¥331.1 a kg on late trades. RSS 3 increased to Rs 175.49 (173.67) a kg on Singapore Commodity Exchange.

Spot prices were (Rs/kg): RSS-4: 164.50 (163.50); RSS-5: 162.50 (162); ungraded: 161 (160); ISNR 20: 161 (161) and latex 60 per cent: 104 (102).

Rubber Reaches 20-Month High as China’s Growth Boosts Demand

April 15 (Bloomberg) -- Rubber climbed to a 20-month high as China’seconomicgrowth accelerated, boosting speculation demand will grow for the commodity used in tires.

Futures in Tokyo gained as much as 1.7 percent to 335.4 yen per kilogram ($3,588 a metric ton), the highest level since July 28, 2008. The price reached a 28-year high of 356.9 yen on June 30, 2008.

China’s gross domestic product expanded 11.9 percent in the first quarter from a year earlier, the statistics bureau said at a briefing in Beijing today. That was more than the median 11.7 percent estimate in a Bloomberg News survey of 24 economists and the fastest pace in almost three years. China is the largest consumer of natural rubber.

“Rubber is advancing on tightening fundamentals,” Hisaaki Tasaka, an analyst at Tokyo-based commodity broker ACE Koeki Co., said today by phone. “Supply from Thailand is declining, while demand in China is expanding.”

Rubber for September delivery added 1.4 percent to 334.5 yen on the Tokyo Commodity Exchange at 11:52 a.m. local time. The price increased for the fourth time in five days.

Futures have risen 21 percent this year as global economies recovered from the worst postwar recession, boosting sales of cars and tires. A seasonal decline in output in Thailand, the largest producer, also increased prices, Tasaka said.

Slow Shipments

Thailand is in a low-production period from February to April, known as wintering, when rubber trees shed their leaves and latex output slows. Shipments from the country will remain slow until early June, Tasaka said.

Clashes between Thai security forces and anti-government protesters also stoked speculation that the political turmoil may disrupt supplies from the country, Tasaka said. The violence killed 21 people before a three-day holiday in Thailand. Rubber trade in the nation will resume tomorrow after the holiday.

China’s industrial production rose 18.1 percent in March and retail sales climbed 18 percent, today’s data showed. Car sales leapt 76 percent in the first quarter from a year earlier, with Mercedes-Benz (China) Ltd. reporting a doubling.

September-delivery rubber on the Shanghai Futures Exchange added 0.6 percent to 25,725 yuan ($3,769) a ton at 11:01 a.m. local time.

Rubber Prices Swell In All Markets On Tight Supplies

(15-Apr-2010 , 12:30 Hours IST)

Rubber futures surged further across the market on the back of tight supplies and strong demand. Benchmark TOCOM September gained 5.10 yen at 335.00 per kg Yen and the near month April surged 15 yen a kg. The spot Rubber prices in the Malaysia's physical markets moved higher by 2.40 cents a kg to 335.40 cents a kg. September futures are trading higher by RMB 130 at RMB 25705 per tonne. Rubber futures benchmark April contract on NMCE gained Rs 284 to the session high of Rs 16500 per 100 kg. In February, domestic rubber consumption increased nearly 9 percent to 77,500 tonnes. Rubber imports during April- Feb jumped to 15,800 tonnes from 71,000 tonnes a year ago. As per latest release by Indian Rubber Board, India's 2009-10 rubber output declined 3.8% to 8.31 lakh tonnes while overall consumption augmented by 6.7% to 9.30 lakh tonnes against 8.71 lakh tonnes reported last year. The total stocks for the current year were at 2.48 lakh tonnes against 1.96 lakh tonnes reported last year. Sharp decline was also seen in total exports as shaved off by almost 50% to 23,746 tonnes while total imports increased to 1,70,048 tonnes from 77,762 tonnes. Powered by Capital Market - Live News