Natural rubber (NR) prices fell by Rs 6 to Rs 212 per kg on 11th March, in the domestic market due to high volatility in the international physical markets and low inventories. The prices of NR in domestic physical markets follow the international market trends, which have witnessed heavy fall, as the data indicated a slowdown in the US and Chinese economies. Concern grew that raw-material demand may weaken, rubber was sold heavily as its consumption depends largely on Chinese demand.
Rubber prices fell to the lowest level in almost three months after an 8.9 magnitude earthquake struck Japan, spurring concerns the disaster may hurt the Japan’s economy and weaken demand. The August-delivery contract on the Tokyo Commodity Exchange plunged to 383.5 yen a kg, the lowest level for the most active contract since 13th December 2010.
The physical price of Thai rubber fell for eighth day amid concerns that tyre demand may decline as overseas buyers delay purchases waiting for prices to weaken further.
The prices of natural rubber at the Bangkok spot market witnessed a fall of almost Rs 22 to Rs 241.26 per kg today as against Rs 263.39 per kg on 8th March.
The sharp fall in the natural rubber prices in domestic market is because of speculation as well as international future markets and slowdown in consumption in China. Prices have also been affected due to the financial year coming to an end, during this time manufacturing sector carry minimal stocks.
Read lot more in Rubber4U – 15th March 2011 issue
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