NR production down while import up

Last month the prices of tyre grade rubber fell to multi year lows in the international market due to economic slowdown and high levels of inventory in China and also weakness in Tocom rubber futures. Due to this scenario, India’s natural rubber imports in February 2014 doubled to 18,141 tonnes, compared to February 2013, while natural rubber production fell to 60,000 tonnes from 62,000 tonnes a year ago.

According to Association of Natural Rubber Producing Countries, natural rubber production increased 4.7% in 2013 among the 11 member countries of ANRPC. Production hit 11.2 million metric tons.

On Monday, RSS4 grade at Kottayam closed at `.146.50 a kg. Today, the benchmark RSS3 grade closed at `.136.07 a kg at Bangkok, while Malaysian SMR20 closed at `.115.88 a kg. Futures on the Tokyo Commodity Exchange, March 2014 futures series closed at ¥241.9 a kg, April at ¥240, May at ¥240.9, June at ¥237.6, July at ¥235.7, and the contract for delivery in August 2014 at ¥235 a kg. While on National Multi Commodity Exchange, March 2014 futures were trading at `.145.15 a kg, April at `.150.30, May at `.154 and June at `.155.01 a kg, at 13.35 IST.

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Read lot more in Rubber4U – 15th March 2014 issue