Vietnam has agreed to participate in the
December meeting of the International Tripartite Rubber Council, suggesting the
possibility of becoming a new member of the council. If Vietnam agrees to join,
up to 80% of the worlds rubber exports will be represented by the group.
Concern of slowdown in World economic growth
is weighing on oil prices after World Bank has cut China’s growth outlook to
7.7% from 8.2 % estimated in the month of May. Most of the market has come
under pressure before the IMF meet on World economic outlook which is creating
anticipation of further slowdown.
Natural rubber futures are expected to make a
downward moment this week on rising supplies, a drop in the overseas markets
and weak demand as tyre manufacturers increases imports. Prices are also under
pressure due to lower buying.
As rainfall has stopped, tapping in Kerala has
picked up. It’s the beginning of rubber production peaks season (during October-January).
The key November rubber contract closed lower at `.182.30 a kg on the
National Multi Commodity Exchange. The spot price of RSS4 grade rubber in the
Kottayam market closed at `.191 per kg.
Tyre makers are raising imports, despite
paying the import duty; they are cheaper than local supplies. Imports jumped
21.2% to 95,047 tonnes in April-August from a year earlier.
Although thin supplies in local spot markets
are likely to restrict the downside. Farmers are holding back supplies. They
are selling negligible output in the market. Tight supplies are giving support
to prices.
Read
lot more in Rubber4U – 15th October 2012 issue
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