Crude oil prices are struggling to gain
significant ground but have managed to pick up in the initial stage of trading
as U.S data stoked optimism that recovery in the world’s largest economy is
picking up, boosting the dollar and raising the appeal of futures denominated
in yen. The contract for delivery in December on the Tokyo Commodity Exchange
climbed to as high as ¥235 a kg and closed at ¥227.2 a kg, after touching a low
of ¥226.5 a kg. It seems that rubber is heading towards a price tag of ¥200 a
kg, but tommorrow the market will be in green.
The Malaysian rubber market finished lower,
due to lack of buying interest from major consumers. China consuming 3.85 million tonnes last
year, representing 34% of global demand, had stopped importing natural rubber
and was consuming locally produced rubber to reduce its stockpile.
In the domestic market, supply of natural
rubber is extremely tight, growers are not releasing stocks as they are expecting
higher price and hence it is holding the fort at `.175.50 a kg.
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