Sunday, June 24, 2012
Wednesday, June 20, 2012
OUTLOOK-India rubber seen down on weak demand, ample supply
OUTLOOK-India rubber seen down on weak demand, ample supply
June 19, 2012
Reuters – Natural rubber prices in India, the world’s fourth-biggest producer, are likely to ease this week tracking losses in the world market and as local tyre makers trimmed purchases amid rising supplies.
The benchmark July rubber on India’s National Multi-Commodity Exchange (NMCE) provisionally closed down 0.6 percent at 18,720 rupees per 100 kg on Tuesday.
The spot price of the most traded RSS-4 rubber (ribbed, smoked sheet) in the Kochi market in southern Kerala state fell by 100 rupees to 18,700 rupees per 100 kg.
“Tyre makers are not making bulk buying. They know supplies are adequate. So they are making small purchases,” said Tom George, a vice president at Indian Rubber Dealers Federation.
Besides, continued flow of imported rubber, especially of Standard Malaysian Rubber (SMR) 20, allowed tyre makers to cut dependence on local supplies, George said.
The spot price of SMR 20 grade rubber was 16,360 rupees in Kuala Lumpur, Malaysia, data with the Indian Rubber Board showed.
India’s natural rubber imports in May rose to 18,419 tonnes from 16,293 tonnes a year ago, state-run Rubber Board said earlier this month.
India imports natural rubber from Thailand, Indonesia, Malaysia and Vietnam.
Supplies in India were rising and are expected to improve further after top rubber producing Kerala state received rains in the past three weeks, dealers said.
Tokyo rubber futures ended lower on Tuesday, retreating from a two-week high on Monday on renewed concerns about the demand impact from economic problems in the euro zone, dealers said.
Natural rubber prices will remain under pressure globally due to falling crude oil prices, which makes synthetic rubber cheaper than natural rubber, dealers said.
Brent crude fell to a near-17-month low below $95 a barrel on Tuesday, hit by the latest twist in the euro zone crisis.
Dealers expect rubber consumption from tyre makers to drop in coming months on lower demand from auto makers, who posted lacklustre sales in May.
June 19, 2012
Reuters – Natural rubber prices in India, the world’s fourth-biggest producer, are likely to ease this week tracking losses in the world market and as local tyre makers trimmed purchases amid rising supplies.
The benchmark July rubber on India’s National Multi-Commodity Exchange (NMCE) provisionally closed down 0.6 percent at 18,720 rupees per 100 kg on Tuesday.
The spot price of the most traded RSS-4 rubber (ribbed, smoked sheet) in the Kochi market in southern Kerala state fell by 100 rupees to 18,700 rupees per 100 kg.
“Tyre makers are not making bulk buying. They know supplies are adequate. So they are making small purchases,” said Tom George, a vice president at Indian Rubber Dealers Federation.
Besides, continued flow of imported rubber, especially of Standard Malaysian Rubber (SMR) 20, allowed tyre makers to cut dependence on local supplies, George said.
The spot price of SMR 20 grade rubber was 16,360 rupees in Kuala Lumpur, Malaysia, data with the Indian Rubber Board showed.
India’s natural rubber imports in May rose to 18,419 tonnes from 16,293 tonnes a year ago, state-run Rubber Board said earlier this month.
India imports natural rubber from Thailand, Indonesia, Malaysia and Vietnam.
Supplies in India were rising and are expected to improve further after top rubber producing Kerala state received rains in the past three weeks, dealers said.
Tokyo rubber futures ended lower on Tuesday, retreating from a two-week high on Monday on renewed concerns about the demand impact from economic problems in the euro zone, dealers said.
Natural rubber prices will remain under pressure globally due to falling crude oil prices, which makes synthetic rubber cheaper than natural rubber, dealers said.
Brent crude fell to a near-17-month low below $95 a barrel on Tuesday, hit by the latest twist in the euro zone crisis.
Dealers expect rubber consumption from tyre makers to drop in coming months on lower demand from auto makers, who posted lacklustre sales in May.
Wednesday, June 13, 2012
Rubber downtrend continues, India production drops in May
Rubber downtrend continues, India production drops in May
June 12, 2012
TOKYO/KOCHI,INDIA (Commodity Online): Weak trends continue to persist in natural rubber markets despite a rebound witnessed on Monday at Tokyo Commodity Exchange. Spot prices in Kottayam and Kochi markets have fallen close to 4% this month at Rs 18750 per 100 kg, according to Rubber Board of India data.
On Tuesday morning, key TOCOM rubber futures fell 3.7% as details of the Euro Zone agreement reached over the weekend to lend Spain emerged.
The most-active Tokyo Commodity Exchange rubber contract for November delivery fell as much as 3.7 percent to 235.5 yen per kilogram. It was changing hands at 237.1 yen, down 7.4 yen, or 3 percent, per kg at 0016 GMT.
Car sales in China rose 22.6 percent in May from a year earlier, according to recent data, extending the double-digit gain made in the previous month, as new models premiered at April’s Beijing autoshow started to hit showrooms, Reuters reported.
Fundamentals in Indian market continue to support rubber although slowing of GDP growth to 5.3% in Q42011-12, rise in petrol prices have caused concerns on demand for rubber from automotive sector. Natural rubber production has declined by 3 per cent to 58,000 tonnes in May 2012, compared to 59,700 tonnes in the same month last year, according to Rubber Board data. The consumption of the commodity rose by 4 per cent to 83,000 tonnes in May this year as against 80,120 tonnes in the corresponding period of last year, Rubber Board data said.
At National Multi Commodity Exchange of India (NMCE), June contract has fallen 6.6% so far this month trading at Rs 18210 per 100 kg on Tuesday morning trade while July contract has fallen 6.80% to Rs 18400 levels.
Imports of natural rubber rose by 13 per cent to 18,419 tonnes last month from 16,293 tonnes in the year—ago period, whereas exports fell by 63 per cent to 1,131 tonnes against 3,031 tonnes in the same period last year, the data said. The stock of natural rubber in the country at the end of May 2012 stood at 2.22 lakh tonnes.
In 2012—13 fiscal, India’s natural rubber production declined by 5 per cent to 1.10 lakh tonnes in the April—May period from 1.16 lakh tonnes in the same period of the 2011—12 fiscal.
Natural rubber consumption grew marginally by 1 per cent at 1.63 lakh tonnes in the April—May period of 2012—13 against 1.61 lakh tonnes in the 2011—12 financial year.
Market on June 11: Lack of buyers saps spot rubber
June 11, 2012
KOTTAYAM, JUNE 11:
Spot rubber declined on Monday. According to sources, there were no buyers on any grade even at lower levels. The market lost ground tracking the moderate losses on the National Multi Commodity Exchange. Sharp fall in the GDP growth, higher prices of petrol and subsequent fall in the sales of automobiles, and weakness in crude oil have dampened the sentiments, analysts said.
Sheet rubber weakened to Rs 186.50 (188) a kg according to traders. The grade dropped to Rs 187.50 (188) a kg both at Kottayam and Kochi as reported by the Rubber Board.
In futures, the June series closed at Rs 183.50 (185.77), July at Rs 185.40 (185.82), August at Rs 184.19 (184.21), September at Rs 182.60 (181.15) and October at Rs 180 (180.78) a kg for RSS 4 on NMCE.
The TOCOM rubber futures rallied paring the early losses as Euro Zone finance ministers agreed on an aid package to help Spanish banks, easing investor fears. Meanwhile the Shanghai Futures opened higher after the release of China’s major economic data for May during the last weekend.
RSS 3 (spot) slipped to Rs 189.80 (190.97) a kg at Bangkok. The June futures recovered to ¥252 (Rs 176.76) from ¥247.5 a kg in day session but then remained inactive during the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 186.50 (188); RSS-5: 183 (185); ungraded: 177 (179); ISNR 20: 184 (185.50) and latex 60 per cent: 129.50 (130).
June 12, 2012
TOKYO/KOCHI,INDIA (Commodity Online): Weak trends continue to persist in natural rubber markets despite a rebound witnessed on Monday at Tokyo Commodity Exchange. Spot prices in Kottayam and Kochi markets have fallen close to 4% this month at Rs 18750 per 100 kg, according to Rubber Board of India data.
On Tuesday morning, key TOCOM rubber futures fell 3.7% as details of the Euro Zone agreement reached over the weekend to lend Spain emerged.
The most-active Tokyo Commodity Exchange rubber contract for November delivery fell as much as 3.7 percent to 235.5 yen per kilogram. It was changing hands at 237.1 yen, down 7.4 yen, or 3 percent, per kg at 0016 GMT.
Car sales in China rose 22.6 percent in May from a year earlier, according to recent data, extending the double-digit gain made in the previous month, as new models premiered at April’s Beijing autoshow started to hit showrooms, Reuters reported.
Fundamentals in Indian market continue to support rubber although slowing of GDP growth to 5.3% in Q42011-12, rise in petrol prices have caused concerns on demand for rubber from automotive sector. Natural rubber production has declined by 3 per cent to 58,000 tonnes in May 2012, compared to 59,700 tonnes in the same month last year, according to Rubber Board data. The consumption of the commodity rose by 4 per cent to 83,000 tonnes in May this year as against 80,120 tonnes in the corresponding period of last year, Rubber Board data said.
At National Multi Commodity Exchange of India (NMCE), June contract has fallen 6.6% so far this month trading at Rs 18210 per 100 kg on Tuesday morning trade while July contract has fallen 6.80% to Rs 18400 levels.
Imports of natural rubber rose by 13 per cent to 18,419 tonnes last month from 16,293 tonnes in the year—ago period, whereas exports fell by 63 per cent to 1,131 tonnes against 3,031 tonnes in the same period last year, the data said. The stock of natural rubber in the country at the end of May 2012 stood at 2.22 lakh tonnes.
In 2012—13 fiscal, India’s natural rubber production declined by 5 per cent to 1.10 lakh tonnes in the April—May period from 1.16 lakh tonnes in the same period of the 2011—12 fiscal.
Natural rubber consumption grew marginally by 1 per cent at 1.63 lakh tonnes in the April—May period of 2012—13 against 1.61 lakh tonnes in the 2011—12 financial year.
Market on June 11: Lack of buyers saps spot rubber
June 11, 2012
KOTTAYAM, JUNE 11:
Spot rubber declined on Monday. According to sources, there were no buyers on any grade even at lower levels. The market lost ground tracking the moderate losses on the National Multi Commodity Exchange. Sharp fall in the GDP growth, higher prices of petrol and subsequent fall in the sales of automobiles, and weakness in crude oil have dampened the sentiments, analysts said.
Sheet rubber weakened to Rs 186.50 (188) a kg according to traders. The grade dropped to Rs 187.50 (188) a kg both at Kottayam and Kochi as reported by the Rubber Board.
In futures, the June series closed at Rs 183.50 (185.77), July at Rs 185.40 (185.82), August at Rs 184.19 (184.21), September at Rs 182.60 (181.15) and October at Rs 180 (180.78) a kg for RSS 4 on NMCE.
The TOCOM rubber futures rallied paring the early losses as Euro Zone finance ministers agreed on an aid package to help Spanish banks, easing investor fears. Meanwhile the Shanghai Futures opened higher after the release of China’s major economic data for May during the last weekend.
RSS 3 (spot) slipped to Rs 189.80 (190.97) a kg at Bangkok. The June futures recovered to ¥252 (Rs 176.76) from ¥247.5 a kg in day session but then remained inactive during the night session on the Tokyo Commodity Exchange.
Spot rates were (Rs/kg): RSS-4: 186.50 (188); RSS-5: 183 (185); ungraded: 177 (179); ISNR 20: 184 (185.50) and latex 60 per cent: 129.50 (130).
Monday, June 11, 2012
Rubber prices set to head south next week
Rubber prices set to head south next week
June 9, 2012
Malaysian rubber prices are likely to ease next week as players are expected to stay on the sidelines in anticipation prices falling further.
A dealer said the market’s underlying fundamentals remained intact due to tight supply.
He said local rubber prices would also track the movements of regional rubber futures markets like the Tokyo Commodity Exchange and Singapore Commodity Exchange.
On a week-to-week basis, the Malaysian Rubber Board’s official physical noon price for tyre-grade SMR 20 fell 100 sen to 890 sen per kg from last Friday’s 990 sen.
Meanwhile, latex-in-bulk shed 36.5 sen to 668.5 sen per kg from 705 sen previously.
The unofficial closing price for tyre-grade SMR 20 declined 104.5 sen to 881.5 sen per kg while latex-in-bulk dropped 37.5 sen to 644 sen per kg. — BERNAMA
Philippines: Rubber farmers seek probe on falling prices
June 9, 2012
COTABATO CITY, Philippines – Owners of rubber farms in North Cotabato urged the Department of Agriculture on Friday to look into the continuing decline of prices of their products.
Datu Boy Imba, a senior official of the Free Rubber Tappers’ Association in the province, said rubber cup lumps, and processed, dried latex are bought by buyers for P48 a kilo, only half of last year’s buying price.
Imba said members of their organization suspect that a “powerful cartel” of traders engaged in marketing of rubber products is manipulating the procurement prices in the province.
“We know that there is a big demand for rubber products abroad yet we here are experiencing this situation now. The government should look into this,” Imba said.
Imba said local officials in the province are unable to answer why prices of rubber products are falling.
Most buyers of rubber products in the province are based in Makilala town. - John Unson
Rubber falls on excess supply, tepid demand
June 11, 2012
KOCHI: Natural rubber prices crashed last week on concerns of excess supply and lower demand. While a drop in global prices has made imports attractive despite rupee depreciation, tyre companies are worried over the sluggish demand in the automobile sector.
International prices of sheet rubber RSS 3, used by tyre companies, fell by Rs 12 in seven days ended June 8 to Rs 190 per kg. The price of block rubber SMR 20 too crashed by over Rs 20 to Rs 154 per kg in the global market, leading to a huge difference of Rs 36 between sheet and block rubber, which may prompt Indian tyre makers to import bigger volumes of block rubber.
According to a leading trader, the landed cost of block rubber, including duties and taxes, will come to around Rs 180 per kg at the present currency rate. This is less than the RSS-4 variety of sheet rubber used by the tyre industry in India. The price of the RSS 4 variety touched Rs 188 per kg on Friday, dropping by Rs 7 during the week.
“The cost of domestic rubber, after adding transportation charges and taxes, will be around Rs 203 per kg at the current prices,” said the trader. Unlike the overseas market, the difference between sheet and block rubber in India is just Rs 2 per kg. Block rubber costs Rs 186 per kg in India.
Though imports look attractive, tyre companies are not eager to enter into forward contracts, given the tepid demand situation. They don’t foresee a major improvement in demand this quarter as the fundamentals are weak. “Original equipment manufacturers are cutting down production because of a weak demand,” said Rajiv Budhraja, director general of Automotive Tyre Manufacturers Association.
Rubber production may not drop when rains intensify in the coming months because planters have put in place a good rain guard system in May. The rise in yield, coupled with sluggish demand and imports, could pull down domestic prices further.
June 9, 2012
Malaysian rubber prices are likely to ease next week as players are expected to stay on the sidelines in anticipation prices falling further.
A dealer said the market’s underlying fundamentals remained intact due to tight supply.
He said local rubber prices would also track the movements of regional rubber futures markets like the Tokyo Commodity Exchange and Singapore Commodity Exchange.
On a week-to-week basis, the Malaysian Rubber Board’s official physical noon price for tyre-grade SMR 20 fell 100 sen to 890 sen per kg from last Friday’s 990 sen.
Meanwhile, latex-in-bulk shed 36.5 sen to 668.5 sen per kg from 705 sen previously.
The unofficial closing price for tyre-grade SMR 20 declined 104.5 sen to 881.5 sen per kg while latex-in-bulk dropped 37.5 sen to 644 sen per kg. — BERNAMA
Philippines: Rubber farmers seek probe on falling prices
June 9, 2012
COTABATO CITY, Philippines – Owners of rubber farms in North Cotabato urged the Department of Agriculture on Friday to look into the continuing decline of prices of their products.
Datu Boy Imba, a senior official of the Free Rubber Tappers’ Association in the province, said rubber cup lumps, and processed, dried latex are bought by buyers for P48 a kilo, only half of last year’s buying price.
Imba said members of their organization suspect that a “powerful cartel” of traders engaged in marketing of rubber products is manipulating the procurement prices in the province.
“We know that there is a big demand for rubber products abroad yet we here are experiencing this situation now. The government should look into this,” Imba said.
Imba said local officials in the province are unable to answer why prices of rubber products are falling.
Most buyers of rubber products in the province are based in Makilala town. - John Unson
Rubber falls on excess supply, tepid demand
June 11, 2012
KOCHI: Natural rubber prices crashed last week on concerns of excess supply and lower demand. While a drop in global prices has made imports attractive despite rupee depreciation, tyre companies are worried over the sluggish demand in the automobile sector.
International prices of sheet rubber RSS 3, used by tyre companies, fell by Rs 12 in seven days ended June 8 to Rs 190 per kg. The price of block rubber SMR 20 too crashed by over Rs 20 to Rs 154 per kg in the global market, leading to a huge difference of Rs 36 between sheet and block rubber, which may prompt Indian tyre makers to import bigger volumes of block rubber.
According to a leading trader, the landed cost of block rubber, including duties and taxes, will come to around Rs 180 per kg at the present currency rate. This is less than the RSS-4 variety of sheet rubber used by the tyre industry in India. The price of the RSS 4 variety touched Rs 188 per kg on Friday, dropping by Rs 7 during the week.
“The cost of domestic rubber, after adding transportation charges and taxes, will be around Rs 203 per kg at the current prices,” said the trader. Unlike the overseas market, the difference between sheet and block rubber in India is just Rs 2 per kg. Block rubber costs Rs 186 per kg in India.
Though imports look attractive, tyre companies are not eager to enter into forward contracts, given the tepid demand situation. They don’t foresee a major improvement in demand this quarter as the fundamentals are weak. “Original equipment manufacturers are cutting down production because of a weak demand,” said Rajiv Budhraja, director general of Automotive Tyre Manufacturers Association.
Rubber production may not drop when rains intensify in the coming months because planters have put in place a good rain guard system in May. The rise in yield, coupled with sluggish demand and imports, could pull down domestic prices further.
Friday, June 8, 2012
India: Physical rubber prices decline further on Wednesday
India: Physical rubber prices decline further on Wednesday
June 7, 2012
Jun 07, 2012
Physical rubber prices continued declining and lost further ground on Wednesday, though the domestic futures bounced back but there were no quantity buyers in the spot market even at the prevailing levels.
Spot prices for RSS-4 variety closed at Rs 191/kg compared to its previous closing of Rs 192/kg; while the RSS-5 variety remained unchanged at Rs 189/kg.
In the futures market, the contract of RSS 4 for June delivery improved to Rs 191.30 compared to its previous closing of Rs 188.11, while the contract for July delivery closed at Rs 193.40 compared to its previous closing of Rs 190 on the National Multi Commodity Exchange.
Japan’s domestic car sales up by 66% in May
June 7, 2012
Recently, the Japan Automobile Dealers Association JADA (Japan Automobile Dealers, Association) announced May sales of the Japanese auto market. The data show that, excluding mini-car sales in May of this year’s total car sales in the Japanese auto market 236,366 cars, up 66.3 percent over the same period last year, last year’s sales of 142,154 vehicles.
Exclude mini-vehicles, Toyota Motor Corporation in May sales topping the list from last year’s growth of 49,606 vehicles to 112,587 vehicles, an increase of up to 127%; followed by Honda’s sales increased from 21,194 vehicles to 31,556 vehicles; Nissan is located in the third, sales up an increase of 25.3 percent to 31,024 vehicles.
Market on Jun 6: Spot rubber declines further
June 6, 2012
KOTTAYAM, JUNE 6:
Physical rubber prices fell further on Wednesday. According to observers, there were no quantity buyers in the market even at the prevailing levels. Anticipation of higher imports due to lower prices in the international markets amidst lacklustre demand and gloomy economic outlook is likely to build further pressure over the markets. The trend was partially mixed.
Sheet rubber weakened to Rs 191 (192) a kg according to traders. The grade dropped to Rs 191.50 (192) a kg both at Kottayam and Kochi as reported by the Rubber Board.
The June series improved to Rs 191.30 (188.11), July to Rs 193.40 (190), August to Rs 192.01 (189.17) and November to Rs 192.03 (191.50) while the September series slipped to Rs 187.11 (187.95) a kg for RSS 4 on the National Multi Commodity Exchange.
The June futures slipped to ¥246.5 (Rs 172.44) from ¥247.9 a kg during the day session but then recovered to ¥247 (Rs 172.71) a kg in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) dropped to Rs 193.39 (195.63) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 191 (192); RSS-5: 189 (189); ungraded: 184 (186.50); ISNR 20: 188 (191) and latex 60 per cent: 131 (131).
India: Free fall of rubber price continues
June 6, 2012
KOCHI: Natural rubber in the country’s markets weakened further on Wednesday with rubber futures on the National Multi Commodity Exchange (NMCE) dropping 1.5%. This follows an over 2% drop in prices on Tuesday. The recent rise in petrol prices and a decline in GDP growth to 5.3% in the fourth quarter of 2011-12 have added to the woes of this plantation crop, analysts said.
At NMCE, a weakening trend in rubber futures was noticed on Tuesday with June contracts dropping by 2.4% to Rs 19,261 per 100 kg. On Wednesday, June contracts were further down by 1.5% to Rs 18,979 per 100 kg. July and August contracts were trading at Rs 19,155 and Rs 19,040 per 100 kg, respectively on Wednesday. Commodities research firm Geojit Comtrade said in a report on Tuesday that RSS-4 (Ribbed Smoked Sheet) in the spot market is being quoted at its lowest since April-end while in the future market, prices have slipped to a five-week low.
In Kochi and Kottayam, the two key rubber markets in India, RSS-4 prices have been continuously falling and in the beginning of the week, prices weakened by Rs 150 per 100 kg to Rs 19,200 levels. Prices of RSS-4 in the Kottayam and Kochi markets were Rs 19,200 on Wednesday.
“Selling momentum gathered pace in the local market, tracking heavy losses in natural rubber prices in the global market. Anticipation of higher imports due to lower prices in the international market increased in arrivals amidst lackluster demand, and gloomy economic outlook is likely to build further pressure,” the report said. Geojit Comtrade noted that a brief pullback towards Rs 19,140 – Rs 19,200 levels cannot be ruled out before the downtrend resumes. “However, prices are expected to have some level of support at Rs 18,950 levels. Consistent trades below Rs 18,950 may see weakness extending towards the Rs18,600 – Rs 18,500 region in the near term, Now, a close above Rs 19,400 is required to ward off the weakness,” it added.
June 7, 2012
Jun 07, 2012
Physical rubber prices continued declining and lost further ground on Wednesday, though the domestic futures bounced back but there were no quantity buyers in the spot market even at the prevailing levels.
Spot prices for RSS-4 variety closed at Rs 191/kg compared to its previous closing of Rs 192/kg; while the RSS-5 variety remained unchanged at Rs 189/kg.
In the futures market, the contract of RSS 4 for June delivery improved to Rs 191.30 compared to its previous closing of Rs 188.11, while the contract for July delivery closed at Rs 193.40 compared to its previous closing of Rs 190 on the National Multi Commodity Exchange.
Japan’s domestic car sales up by 66% in May
June 7, 2012
Recently, the Japan Automobile Dealers Association JADA (Japan Automobile Dealers, Association) announced May sales of the Japanese auto market. The data show that, excluding mini-car sales in May of this year’s total car sales in the Japanese auto market 236,366 cars, up 66.3 percent over the same period last year, last year’s sales of 142,154 vehicles.
Exclude mini-vehicles, Toyota Motor Corporation in May sales topping the list from last year’s growth of 49,606 vehicles to 112,587 vehicles, an increase of up to 127%; followed by Honda’s sales increased from 21,194 vehicles to 31,556 vehicles; Nissan is located in the third, sales up an increase of 25.3 percent to 31,024 vehicles.
Market on Jun 6: Spot rubber declines further
June 6, 2012
KOTTAYAM, JUNE 6:
Physical rubber prices fell further on Wednesday. According to observers, there were no quantity buyers in the market even at the prevailing levels. Anticipation of higher imports due to lower prices in the international markets amidst lacklustre demand and gloomy economic outlook is likely to build further pressure over the markets. The trend was partially mixed.
Sheet rubber weakened to Rs 191 (192) a kg according to traders. The grade dropped to Rs 191.50 (192) a kg both at Kottayam and Kochi as reported by the Rubber Board.
The June series improved to Rs 191.30 (188.11), July to Rs 193.40 (190), August to Rs 192.01 (189.17) and November to Rs 192.03 (191.50) while the September series slipped to Rs 187.11 (187.95) a kg for RSS 4 on the National Multi Commodity Exchange.
The June futures slipped to ¥246.5 (Rs 172.44) from ¥247.9 a kg during the day session but then recovered to ¥247 (Rs 172.71) a kg in the night session on the Tokyo Commodity Exchange. RSS 3 (spot) dropped to Rs 193.39 (195.63) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 191 (192); RSS-5: 189 (189); ungraded: 184 (186.50); ISNR 20: 188 (191) and latex 60 per cent: 131 (131).
India: Free fall of rubber price continues
June 6, 2012
KOCHI: Natural rubber in the country’s markets weakened further on Wednesday with rubber futures on the National Multi Commodity Exchange (NMCE) dropping 1.5%. This follows an over 2% drop in prices on Tuesday. The recent rise in petrol prices and a decline in GDP growth to 5.3% in the fourth quarter of 2011-12 have added to the woes of this plantation crop, analysts said.
At NMCE, a weakening trend in rubber futures was noticed on Tuesday with June contracts dropping by 2.4% to Rs 19,261 per 100 kg. On Wednesday, June contracts were further down by 1.5% to Rs 18,979 per 100 kg. July and August contracts were trading at Rs 19,155 and Rs 19,040 per 100 kg, respectively on Wednesday. Commodities research firm Geojit Comtrade said in a report on Tuesday that RSS-4 (Ribbed Smoked Sheet) in the spot market is being quoted at its lowest since April-end while in the future market, prices have slipped to a five-week low.
In Kochi and Kottayam, the two key rubber markets in India, RSS-4 prices have been continuously falling and in the beginning of the week, prices weakened by Rs 150 per 100 kg to Rs 19,200 levels. Prices of RSS-4 in the Kottayam and Kochi markets were Rs 19,200 on Wednesday.
“Selling momentum gathered pace in the local market, tracking heavy losses in natural rubber prices in the global market. Anticipation of higher imports due to lower prices in the international market increased in arrivals amidst lackluster demand, and gloomy economic outlook is likely to build further pressure,” the report said. Geojit Comtrade noted that a brief pullback towards Rs 19,140 – Rs 19,200 levels cannot be ruled out before the downtrend resumes. “However, prices are expected to have some level of support at Rs 18,950 levels. Consistent trades below Rs 18,950 may see weakness extending towards the Rs18,600 – Rs 18,500 region in the near term, Now, a close above Rs 19,400 is required to ward off the weakness,” it added.
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