RSS4 weakened in the Indian markets on Saturday
weighed down by sluggish demand. In the physical market, the grade was quoted
lower around `.161 a kg. In NMCE, the benchmark February rubber futures
trading in narrow ranges and closed at `.161.89 a kg and May
closed at `.171.01 a kg. Lack of buying interest despite higher
international natural rubber prices and rising stockpiles probably pressurised the
Indian natural rubber prices. Fall in natural rubber imports is likely cushion further
fall in natural rubber prices.
China’s GDP rose to 7.9% in the Q4 of 2012 on
a y-o-y basis following seven straight quarters of slowdown. Industrial
production recorded a growth of 10.3% in December. Crude for February delivery
rose to $95.25 on 18th January, the highest close since 17th September 2012. Oil
is used to make synthetic rubber, while a weaker Japanese currency (Yen touched
90.13 per dollar) boosts the appeal of yen-based contracts. Rubber rose for a
second day, heading for the longest weekly winning streak since November 2007,
as the yen weakened against the dollar and oil gained, boosting the appeal for
the commodity. Rubber for delivery in June advanced to ¥316.5 a kg on the Tokyo
Commodity Exchange and on 21st January, the price may touch ¥319.5 a kg.
Read
lot more in Rubber4U – 1st February 2013 issue
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