Tuesday, May 8, 2018

Oil slips, tyre price increases


US crude oil prices have slipped back after strong gains made as the White House prepared to announce a decision on whether it will withdraw from the Iran nuclear deal. If US president Donald Trump opts to reimpose sanctions on Iran it would probably entail reductions in the country’s oil exports and deliver a jolt to international markets.  West Texas Intermediate, the US oil benchmark, rose above $70 a barrel on 7th May for the first time in more than three years.

Domestic tyre prices have risen in the range of 2.5-3%, as manufacturers deal with an increase in input prices and a weaker rupee. Oil and its linked derivatives such as carbon black form an integral part of a tyre company’s raw material basket. In addition, a weaker rupee means imports become more expensive.

The benchmark RSS4 grade rubber closed at `.121 a kg at Kottayam, while RSS3 grade closed at `.117.84 a kg at Bangkok and Malaysian SMR20 closed at `.96.53 a kg. On National Multi Commodity Exchange May 2018, the futures closed at `.121.65 a kg, June at `.125.79 a kg and July closed at `.128.24 a kg. Tokyo Commodity Exchange May 2018 futures series closed at ¥179 a kg, June at ¥183.6, July at ¥186.7, August at ¥189.3, September at ¥190.9 and the contract for delivery in October closed at ¥191.7 a kg. On Wednesday, most probably Tocom futures contract for delivery in October 2018 may trade in the range of ¥189 & ¥193 a kg.

To read Rubber4U – 15th May 2018 issue: http://rubber4u.com/Public/Abcd.pdf
For 2017-18 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf

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