Thailand continued to intervene in the rubber
market although prices have rebounded largely due to the prospect of rising
demand after the Federal Reserve launched a new stimulus programme for the US
economy. Major rubber producing countries began cutting exports since 1st
October, by reducing supplies of 180,000 tonnes of exports in the fourth
quarter and 120,000 tonnes in the first three months of next year.
Today, the price of RSS4 grade closed at `.177.14
per kg at Bangkok. In the domestic futures market, the October series is currently
trading at `.197, November at `.193.50, December at `.192.50
and January 2013 at `.191.77 a kg on the National Multi Commodity Exchange. After
rallying 33% since mid-August on the Tokyo Commodity Exchange, futures were further
boosted by concerns about supply restrictions and are trading higher, October
series trading at ¥269 per kg and March 2013 at ¥273.10 per kg.
India’s natural rubber consumption rose 5% to
4.20 lakh tonnes, while production grew marginal 0.8% to 331700 tonnes in
April-August 2012 on y-o-y basis. Eurozone debt crisis, weak demand from tyre
industry and recent bearishness in crude oil prices could limit gains in NR prices.
But, bullish trend will probably continue when Chinese markets reopen and most
probably RSS4 grade will touch `.201 a kg., in short
run.
Read
lot more in Rubber4U – 15th October 2012 issue
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