Spot rubber stays steady

Spot rubber stays steady


Kottayam, Nov. 25

Physical rubber prices finished unchanged on Thursday. The market sustained at previous day's closing levels lacking quantity sellers though the domestic futures were weak on NMCE. According to sources the sentiments were mainly driven by continuous rains and supply concerns and the volumes were narrow. Sheet rubber finished flat at Rs 199.50 both at Kottayam and Kochi according to Rubber board and dealers.

Among other reports, supply of natural rubber (NR) from the ANRPC region, which accounts for about 92 per cent of the global output, is now expected to fall 3.8 per cent in the fourth quarter (October-December) of the current year as per revised figures reported by Member countries in the third week of November.

China's consumption of NR (including NR-rich grades of compound rubber) is anticipated to rise by 7.1 per cent to 3.26 million tonnes during 2010 and by 6 per cent to 3.45 million tonnes during 2011. The growth attained in 2009 was 10.9 per cent. In India and Malaysia, consumption of NR is likely to keep a low pace during the fourth quarter according to Natural Rubber Trends & Statistics, November 2010 released by ANRPC.

Futures decline

RSS 4 declined at the December series to Rs 200.55 (202.14), January to Rs 203.55 (205.01), February to Rs 205.90 (207.43) and March to Rs 209.01 (210.47) a kg on National Multi Commodity Exchange (NMCE).

The volumes stood at 5906 lots and the turnover at Rs 120.69 crores. The total open interest in all series was 6397 lots.

The December futures for RSS 3 improved to ¥359.6 (Rs 195.92) from ¥356.3 during the day session but then fell back to ¥355.4 (Rs 193.65) a kg in the night session on the Tokyo Commodity Exchange (TOCOM). The grade (spot) recovered partially to Rs 200.15 (199.50) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 199.50 (199.50); RSS-5: 187.50 (187.50); ungraded: 183.50 (183.50); ISNR 20: 192.50 (192.50) and latex 60 per cent: 130 (130).