Thursday, February 23, 2012

Rubber climbs on declining supply

Rising demand for natural rubber from tyre manufacturing sector amid declining production in top producing countries may keep the global price up in the coming days. Many rubber producing areas in Thailand and Indonesia is experiencing low latex production on bad weather conditions. This declining production of rubber coupled with easing global crisis is heating up the price of rubber.

Rubber reached the highest level in five months amid declining supply in Thailand and after Europe agreed on a second bailout for Greece. Greece winning 130 billion euros in aid it needs to avoid a March bankruptcy. Higher oil prices were also supportive as crude rallied to a nine-month high after Iran said it stopped selling to France and Britain, boosting the appeal of natural rubber as an alternative to synthetic rubber. 

Today, RSS4 grade closed at Rs 186 a kg at Kottayam and RSS3 grade closed at Rs 201.16 from Rs. 202.11 a kg at Bangkok. The March futures for the grade increased to ¥320.8, April closed at ¥325.4, May at ¥330.7, June at ¥334.6 and July at ¥337.5 on the Tokyo Commodity Exchange.

Read lot more in the latest issue of Rubber4U

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