A peak production phase, rising imports and sluggish
sentiment in the international market have affected the domestic prices. Natural
rubber prices have fallen below the international prices and growers are holding
the stocks with an expectation of price rise. Traditionally, domestic natural
rubber prices have been marginally ahead of international prices. The domestic
price touched a low of `.160 per kg last week, down by nearly `.4
from the international level. Imports have jumped this year as supply was
insufficient in the earlier months. In addition to imports, a slowdown in the rubber
goods sector has hit consumption, which in turn led to a fall in prices.
Indian natural rubber futures are likely to
edge higher during the week on bargain hunting driven by an upward trend in
overseas markets and as demand from tyre makers improved. Though rubber is the
key component in manufacturing tyre, but tyre makers do not seem to be keen on
a price cut to boost sales.
Today, Tokyo Commodity Exchange rubber
contract for May delivery was down at ¥266.4 per kg. The benchmark contract
rose as high as ¥269.2 and touched a low of ¥266.2. Kuala Lumpur market closed
at `.154.68 a kg for SMR-20, while RSS3 grade at Bangkok
closed at `.164.97 per kg., RSS-4 grade rubber in Kottayam closed at
`.162 a kg.
Tocom rubber futures were slightly down after
reaching a two-month high; however, rubber futures are supported by hopes that the
U.S. Federal Reserve could unleash more stimulus at the end of its two-day
policy meeting, which begins on Tuesday.
Read
lot more in Rubber4U – 15th December 2012 issue
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