Spot rubber gains on covering buys

Spot rubber gains on covering buys

Kottayam, Sept 2

Domestic rubber prices improved on Thursday.

In spot, the market turned better following the partial recovery in futures on the National Multi Commodity Exchange (NMCE).

Covering purchases at lower levels lifted leading grades though major consuming industries continued to stay inactive as usual.

Sheet rubber increased to Rs 163.50 from Rs 160 a kg in the main marketing centres.

The grade weakened further to Rs 163.50 (164) a kg, according to Rubber Board's Web site.

FUTURES RISE

In the futures, the September series improved to Rs 164.12 (162), October to Rs 163.45 (161.41), November to Rs 163.35 (161.02) and December to Rs 164.50 (161.75) a kg for RSS 4 on the NMCE.RSS 3 slipped with the September futures dropping to ¥309.8/ Rs.171.95 (¥309.9) a kg during the day session but closed inactive during the night session on the Tokyo Commodity Exchange. RSS 3 (spot) firmed up to Rs 161.78 (159.60) a kg at Bangkok.

Spot rates (Rs/ kg) were: RSS-4:163.50 (160); RSS-5: 157 (155); ungraded: 152 (150); ISNR-20: 148.50 (148); and Latex 60%: 112 (112.50).



India’s Aug rubber output rises by 11.9%

MUMBAI (Commodity Online): India’s natural rubber output rose 11.9% on year in August from 64,750 tn to 72,500 tn. Demand declined 0.9% on year from 79,750 tn to 79,000 tn, according to provisional data released by Rubber Board.

In Apr-Aug output moved up 8.5% to 2, 93,750 tn while demand rose 3.4% from 3, 77,600 tn to 3, 90,350.

Rubber imports fell to 18,834 tn in August from 22,640 tn, and exports were also lower at 15 tn against 91 tn in the same period last year. Rubber Board reported on Wednesday that the production went up mainly due to favorable weather and better prices, also better farm care practices helped to increase tapping during the rainy season.

Although overall demand moved up during Apr-Aug, consumption in August declined marginally. Consumption declined in the preceding month of July too. The lockout at Apollo Tyres manufacturing unit in Perambra was a reason for the decline in demand.

Imports of natural rubber declined as the price of sheet rubber was lower in Apr-Jun in the domestic market compared with rates in overseas market.

To stabilize the supply and demand of natural rubber in the world market the Malaysian Government is cooperating with key natural rubber producing countries like Thailand and
Indonesia.

Under the Supply Management Scheme, the three major producers supplying over 80% of the world’s natural rubber have agreed to control their exports in the long run to bring about a better balance between supply and demand to stabilize the price said Senator A Kohilan, the Deputy Minister of Plantation Industries and Commodities.



India’s Aug rubber imports drop by 16.8%

MUMBAI (Commodity Online): India's natural rubber imports in August dropped 16.8% from previous year to 18,834 tn, According to provisional Data released by the Rubber Board.

Exports in August stood at 15 tn, down 76 tn from a year ago. Last year, exports were 22,640 tn. Imports declined mainly due to lower local prices of sheet rubber during Apr- Jun as against overseas markets.

According to the data released on Tuesday by the Rubber Trade Association of Japan, Japan's natural rubber imports in July rose 78% from a year earlier, to 63,690 metric tons. Natural rubber imports in July were up 4.3% on month.

The Japan Automobile Manufacturers Association said Tuesday that production of cars, trucks and buses in Japan increased 16.8% on year in July. This is the ninth consecutive month of increase, JAMA said. Vehicle output rose to 866,762 vehicles in July, up from 742,247 vehicles in the same month a year earlier.

Domestic vehicle demand totaled 486,606, up 12.9%. Japan's exports of cars, trucks and buses increased 24.4% on year in July as vehicle shipments to North America, the Middle East and other Asian markets grew.

Exports totaled 422,641 vehicles in July, up from 339,648 vehicles in the same month a year earlier. The Malaysian Government is cooperating with key natural rubber producing countries, Thailand and Indonesia to stabilize the supply and demand of natural rubber in the world market.

Under the Supply Management Scheme, the three major producers supplying over 80% of the world’s natural rubber have agreed to control their exports in the long run to bring about a better balance between supply and demand to stabilize the price said Senator A Kohilan, the Deputy Minister of Plantation Industries and Commodities.