Tuesday, April 9, 2013

Measures to shore up rubber prices


According to Indonesian Rubber Association (Gapkindo), during October to November 2012, Indonesia slashed as much as 111,000 tonnes of natural rubber from the market, inching closer to the commitment of 117,000 tonnes for six months, ending March 2013. According to the Gapkindo chairman, Daud Husni Bastari, the mechanism was still poorly supervised and it was unclear whether stakeholders carried it out according to their commitments. The Indonesian rubber industry will propose a review of the supply management that it has implemented when futures on the Tokyo Commodity Exchange plunged to a three-year low of ¥205.6 in August 2012. The review proposal will be rolled out during a meeting of the International Tripartite Rubber Council (ITRC) from Wednesday to Friday in Phuket-Thailand, which will decide further moves on shoring up of natural rubber prices.

There are no buyers at the current levels as they anticipate a further downtrend to occur in prices. If the international prices go up further, then the prices may climb further in the domestic market. The possibility of spot markets of natural rubber in India is strengthening. In the domestic futures market, at 3.30 pm IST, the April 2013 series were trading with positive note at `.161.10 a kg, May at `.162.10, June at `.161.65, July at `.161.57 and August at `.160 a kg on the National Multi Commodity Exchange. At Kottayam, RSS4 grade rubber closed at `.164.50 a kg and the price of RSS3 grade closed at `.154.07 per kg at Bangkok, while Malaysian SMR 20 closed at `.141.81 a kg. The contract for delivery in September closed at ¥275.5 a kg on the Tokyo Commodity Exchange.

Read lot more in Rubber4U – 15th April 2013 issue

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