Rubber prices dipped amid concerns about
weaker demand as Europe's economy worsens and could lower rubber demand and the
lowest new-job figures since June in the United States.
The euro zone will not start to shake off its
slump until the second half of 2013, said Mario Draghi, President of European
Central Bank.
Domestic natural rubber prices made further
declines, though the growers are reported to be holding their stocks since the
prices are running very low, selling from dealers kept the commodity under
pressure. A break below the `.160 level (Low of `.159.75
per kg) during early trades on the National Multi Commodity Exchange created an
almost panic situation in the local market.
On Friday, Tokyo Commodity Exchange the
December futures moved down to ¥250.9 from ¥251 during the day session and then
to ¥249.7 a kg in the night session for 10th December day trade. Kuala
Lumpur market closed at `.154.22 a kg for SMR-20, while RSS3 grade at Bangkok
closed at `.164.85 per kg. On Saturday, RSS-4 grade rubber in Kottayam
closed at `.160.50 a kg., while the key December rubber contract closed
at `.162.60 per kg, January at `.164.79, February at `.167.43
and March at `.169.56 a kg on the National Multi Commodity Exchange.
The world’s fourth largest rubber exporter -
Vietnam may join the International Tripartite Rubber Council of top producing
nations, strengthening the group which has agreed to cut shipments to support
prices. According to China Rubber Industry Association, China’s total tyre
output will increase 5.9% to 483m pieces in 2012. US auto sales climbed 15% in
November to 1.14 million vehicles.
Read
lot more in Rubber4U – 15th December 2012 issue
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