Wednesday, November 27, 2013

Rubber still in bearish stage

In a letter sent by Kerala Finance Minister K M Mani to Anand Sharma, the Union Minister for Commerce and Industry, has pointed out that on the request of tyre manufacturers, Union Minister had given permission for the import of natural rubber. Unfortunately the said decision has created a sudden fall in the price of natural rubber and the farmers are extremely worried about the government’s decision.

The country’s first e-SBR unit has been set up by Indian Synthetic Rubber Ltd. (ISRL), a joint venture promoted by Indian Oil, TSRC Corporation, Taiwan, and Marubeni Corporation, Japan, is ready for commissioning in Panipat, Haryana and Union Minister for Petroleum and Natural Gas, M. Veerappa Moily, will commission the `.950 crore project on Friday.

Tyre companies have already built-up their inventory through imports. Lower natural rubber prices would bring down the raw material cost of tyre manufacturers, thereby boosting their profitability. Ceat Ltd, JK Tyre & Industries Ltd, MRF Ltd, Balkrishna Industries Ltd and Apollo Tyres Ltd are likely to benefit from the lower prices.

RSS4 grade closed at `.152 a kg at Kottayam, while National Multi Commodity Exchange December futures closed at `.152.97 a kg, January 2014 at `.154.95, February at `.157.49 and March 2014 at `.160.81 a kg. RSS3 grade closed at `.154.30 a kg at Bangkok and Malaysian SMR20 closed at `.141.85 a kg. While Tokyo Commodity Exchange, December futures series closed at ¥252.3 a kg, January 2014 at ¥251.5, February at ¥252.8, March at ¥254.1, April at ¥255.6 and the contract for delivery in May 2014 at ¥256.9 a kg. Tommorrow most probably market is expected to touch ¥259 tag for May delivery.

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