The slowdown in the auto industry is hurting
rubber demand from tyre companies. It looks like demand will remain weak for
the next few months. Tyre producers are not buying large quantities as they
have enough inventories. Farmers are not in a mood to sell at the current level
as they are expecting an improvement in price from March onwards due to drop in
tapping and production.
The spot price of RSS-4 rubber in Kottayam-Kerala,
rose marginally and closed at `.157.50 per kg. Indian
natural rubber futures are likely to remain steady this week as farmers are
holding back produce, hoping for an increase in prices, while tyre makers are
trimming purchases due to lower demand from the auto industry.
RSS3 grade closed at `.176.93 per kg at
Bangkok, while Malaysian SMR 20 closed at `.165.04 a kg. In the
domestic futures market, the February 2013 series closed at `.158.30, March at `.160.90 and July at `.169.70 a kg on the National Multi Commodity Exchange.
On the Tokyo Commodity Exchange, February futures series closed with a positive
note at ¥310.2 per kg, March at ¥312.5, June at ¥329 per kg and July 2013 at ¥333.4
per kg.
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