Monday, February 4, 2013

Domestic market waiting for upward move


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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