Tuesday, November 6, 2012

Tommorrow a good day, but don’t expect immediate rise


The continued concerns about Europe and now the uncertainty about the U.S election. There is some support for oil because of some expectation that the lower prices will prompt some demand.

According to International Rubber Study Group, India’s demand for both synthetic and natural rubber is expected to rise to 2.7 million tonnes by 2021. During January-September period, Ivory Coast’s natural rubber exports increased 15% to 199277 tonnes, on y-o-y basis and according to Vietnam’s General Statistics Office, the country’s rubber exports are anticipated to rise 61% to 100000 tonnes this month. Rubber inventories in the warehouses monitored by SHFE rose 5.3% to 62965 tonnes in the previous week.

The spot price of RSS4 grade rubber in the Kottayam market closed at `.174.50 per kg. The price of RSS3 grade at Bangkok closed at `.160.61 per kg, while Malaysian SMR 20, which Indian tyre makers prefer to import, closed at `.148.93 a kg. On TOCOM rubber futures, November series closed at ¥237 a kg, December at ¥237.7, January at ¥241.3.4, February at ¥243, March at ¥244.9 and April at ¥246.4 a kg.

Don’t expect the rubber price to show immediate rise. Still lot more down side has to be seen, as the economic outlook is still weak.

Read lot more in Rubber4U – 15th November 2012 issue

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