Sunday, November 9, 2014

Will rubber rebound or go below Rs.110 a kg?

Japanese based Yokohama Rubber announced start of commercial production at its plant with an investment of over `.300 crore in India at Bahadurgarh-Haryana, which has an installed capacity of 2,000 tyres per day. Indonesian Rubber Association makes a second appeal to its members to impose strict limit on sales until the second quarter of 2015, while Malaysian government has allocated 100 million ringgit to support rubber farmers and a subsidy programme will be activated when the price of SMR20 grade rubber falls to 4.60 ringgit per kg. Thailand, Indonesia and Malaysia are likely to meet on 20-21 November to discuss plans to set prices together and reduce supply. Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 1.3% to 173792 tonnes last week.

Ahead of the peak season in India, the rubber prices are likely to remain subdued as tyre manufacturers have already stock-piled for most of the requirements. The Kerala State Co-operative Rubber Marketing Federation Limited has begun procuring RSS-4 and 5 grade rubber directly from farmers by providing `.5 per kg more than the rates fixed by Rubber Board, under the Kerala Government’s rubber procurement scheme. A sub-committee of the panel to formulate National Rubber Policy is meeting in Kochi this week, which among other things would discuss steps to boost domestic demand for rubber and protect farmers from steep fall in rubber prices.

According to Malaysian Rubber Board director general Datuk Dr Salmiah Ahmad, the demand for natural rubber next year is expected to be higher than the supply and natural rubber prices, which are at their five-year low now, are expected to strengthen next year

According to the latest information, the benchmark RSS4 grade rubber closed at `.120 a kg at Kottayam, while RSS3 grade closed at `.101.07 a kg at Bangkok and Malaysian SMR20 closed at `.92.69 a kg. On National Multi Commodity Exchange November 2014 futures closed at `.120.95 a kg, December at `.118.72, and January 2015 at `.119.47 a kg. Tokyo Commodity Exchange, November 2014 futures series closed at ¥189.9 a kg, December at ¥193, January 2015 at ¥195.2, February at ¥198, March at ¥199.9 and the contract for delivery in April 2015 closed at ¥200.8 a kg. On Monday, most probably Tocom futures contract for delivery in April 2015 may trade between ¥198 & ¥204 a kg.

For 2014-15 Rubber Forecast,

No comments:

Post a Comment