Due to slowing manufacturing in China and U.S,
rubber tumbled to the lowest since 2009, raising concern about the decelerating
global growth and worsening a glut of natural rubber. On the Tokyo Commodity
Exchange, futures for June delivery fell to ¥150.6 a kg, the lowest settlement
for a most active contract since March 2009. The natural rubber prices are
further expected to fall as a global glut is forecast to widen amid softening
demand.
Stockpiles on the Shanghai Futures Exchange
at the end of 2015 totaled 249,307 tonnes, the largest since at least January
2003, according to the exchange. According to the China Rubber Industry
Association secretary general Mary Xu, China’s auto industry is likely to grow
at an annual pace of 3.7% in the five years to 2020 compared with a rate of 6.9%
in 2014.
The benchmark RSS4 grade rubber closed at `.101
a kg at Kottayam, while RSS3 grade closed at `.78.11 a kg at
Bangkok and Malaysian SMR20 closed at `.73.14 a kg. On
National Multi Commodity Exchange January 2016 futures closed at `.99.98
a kg, February at `.100.11 and March closed at `.101.80
a kg. On Tokyo Commodity Exchange, January 2016 futures series closed at ¥137.3
a kg, February at ¥139.7, March at ¥144.1, April at ¥147.1, May at ¥149.3 and
the contract for delivery in June 2016 closed at ¥150.6 a kg. On Wednesday,
most probably Tocom futures contract for delivery in June 2016 may trade in the
range of ¥145.5 & ¥151 a kg.
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