The natural rubber market is expected to
continue its bearish momentum during the week on economic problems in the US,
China and Europe.
China had begun to buy natural rubber from
major producing areas for its state reserves. The government plans to stockpile
between 150,000 and 200,000 tonnes by end 2013 and buy 60,000 tonnes before
year end to benefit local farmers. China has stockpile policies on soybeans,
copper and other commodities, but rubber stockpiling is not usual.
Rubber inventories in warehouses monitored by
the Shanghai Futures Exchange rose 2.3% to 64,405 tonnes last week - their
highest since January last year.
The spot price of RSS4 grade rubber in
Kottayam market closed at `.168 per kg. The
price of RSS3 grade at Bangkok closed at `.164.92 per kg, while
Malaysian SMR 20, which Indian tyre makers prefer to import, closed at `.152.73
a kg. On TOCOM rubber futures, November series closed at ¥236.1 a kg, December
at ¥236.8, January at ¥239.7, February at ¥243.5, March at ¥246.1 and April at ¥248.2
a kg.
Don’t expect the rubber price to show
immediate rise. Still lot more down side has to be seen, but don’t expect the
price to go below `.164 a kg, in the domestic market in the normal course of
time.
Read
lot more in Rubber4U – 1st December 2012 issue
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