Friday, January 11, 2013

IIP declines, but market steady


According to the government of India data, index of industrial production (IIP) declined 0.1% in November 2012, compared to November 2011, due to deceleration in production in manufacturing, mining and electricity generation.

India has decided to opt out of negotiations for agreements between select WTO member countries for liberalizing foreign direct investment and visa regimes in service sectors and for lowering import duty on 357 information technology products and 54 environmental goods, saying the talks were against its interests.
              
What the US and European Union are trying to do is cherry-picking without addressing the core concerns of developing countries. Early harvest was pushed by developed countries as they were unwilling to open up farm trade, a domestic hot potato, even as countries such as India were not very keen on the plan. Although India is no longer part of the negotiating group, it retains its ‘observer status’ to keep the option of rejoining talks later. India's view is that the issue needs to discussed at the WTO and instead of following a product-specific list approach, a better strategy would be to have project-driven agenda that will benefit the developing countries.

Asian rubber settled mixed as firm fundamentals support, but a pullback in the broader market after strong gains last week weighed on some rubber bourses.

Tocom rubber is vulnerable to currency moves, benchmark June natural rubber futures on the Tokyo Commodity Exchange settled at ¥312.3 a kg as major producing regions experience heavy rain, keeping supply tight.

The world’s largest importer China was in the market bidding ahead of the Lunar New Year break in February, its bids were often too low for trades. Natural rubber prices may hit US$4 per kg in 1st quarter of 2013 due to firm fundamentals, due to seasonal factors and an improved global macroeconomic outlook.

RSS3 grade closed at `.185.06 per kg at Bangkok, while Malaysian SMR 20, which Indian tyre makers prefer to import, closed at `.169.25 a kg. On the Tokyo Commodity Exchange, January futures series in night session of trade date 15th January closed at ¥298 per kg, February at ¥299.3, May at ¥308.1 per kg and June 2013 at ¥311.5 per kg.
                                                         
Read lot more in Rubber4U – 15th January 2013 issue

1 comment:

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