Monday, October 7, 2013

Positive trend expected

Around 8500 rubber dealers were on strike against the RSS4 grade price falling to `.172 per kg. Natural rubber price slid further to `.166 per kg, resulting in a price crash of `.6 per kg just in a week. Slowing industrial demand for rubber in the domestic market and rising rubber imports reflect a pro-industry situation. Indian Rubber Dealers' Federation (IRDF) has put up before the commerce ministry that the Centre should gear up for rubber procurement if industrial demand does not pick up in coming days.

In April, the Union commerce minister had given the assurance to ramp up import duty on natural rubber to `.34 from the current `.20 per kg. This needs to be done at the earliest, George Valy, IRDF president.

According to Rubber Board of India, natural rubber imports increased 208.41% to 45,581 tonnes in September 2013 compared to 14779 tonnes recorded in 2012. Natural rubber production eased nearly 5% on year to 78,000 tonnes.

On Monday, RSS4 grade closed at `.165 a kg at Kottayam. While National Multi Commodity Exchange October futures closed at `.168.98 a kg, November at `.169.39, December at `.171.32 January 2014 at `.173.80 and February at `.176 a kg. On Tuesday, RSS3 grade closed at `.157.15 a kg at Bangkok, while Malaysian SMR20 closed at `.145.24 a kg. While Tokyo Commodity Exchange, October futures series were trading at ¥251 a kg, November at ¥253, December at ¥255.4, January 2014 at ¥258.6, February at ¥261.5 and the contract for delivery in March 2014 at ¥264 a kg. at 14.25 JST.

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