Rubber settles lower before the ruling

Buying interest picked up this week because of lower prices, but growers are holding the stock for higher level of prices. Deal activity picked up in the physical rubber markets as a dip in prices after recent sharp gains attracted back buyers.

On Friday, Asian rubber prices settled lower due to losses in oil prices as well as a sharp decline in Shanghai rubber ahead of a key U.S ruling involving tyre imports from China. The U.S Department of Commerce (USDOC) today announced the final antidumping and countervailing duty margins to set out the tariffs that will be applied to unfairly traded imports of passenger vehicle and light truck tyre imports from China that benefited from subsidies or were dumped in the U.S. market. The antidumping margins announced by the USDOC on imports from China ranged from 14.35 to 87.99%. Countervailing duties on products from China range from 20.73 to 100.77%. If the U.S International Trade Commission (USITC) votes affirmatively in their upcoming injury determination, these rates will apply for the term of the relief.

Benchmark November natural rubber on the Tokyo Commodity Exchange settled 2.1% lower at ¥232.6 a kg. While benchmark natural rubber futures on the Shanghai Futures Exchange settled 2.8% lower.

The benchmark RSS4 grade rubber closed at `.131.50 a kg at Kottayam, while RSS3 grade closed at `.120.04 a kg at Bangkok and Malaysian SMR20 closed at `.101.55 a kg. On National Multi Commodity Exchange June 2015 futures closed at `.131.33 a kg, July at `.135.98, August at `.137.83 and September at `.137.64 a kg. On Tokyo Commodity Exchange, June 2015 futures series closed at ¥219 a kg, July at ¥220.1, August at ¥222.5, September at ¥225.1 October at ¥229 and the contract for delivery in November 2015 closed at ¥232.6 a kg.

To read Rubber4U – 15th June 2015 issue: http://rubber4u.com/Public/Abcd.pdf