Saturday, April 20, 2013

Yesterday’s skid, today’s gain


International Monitory Fund has lowering its outlook for world economic growth this year to 3.3%, down from its forecast in January of 3.5%. It expects U.S economic growth of 1.9% in 2013, down from its January estimate of 2.1%. It expects that the combined economy of the 17 euro countries will shrink 0.3% in 2013.

A sharp decline in inflation, possibility of a rate cut in next month's Reserve Bank of India policy, falling prices of crude oil and gold could have a positive impact on India's trade deficit.

Physical rubber prices continued to remain under pressure. Decline in the international natural rubber prices and the absence of buyers dampened the sentiments. A seasonal pick-up in rubber production in Thailand might be one of the fundamental reasons for price fall. On 18th April, sheet rubber weakened to `.159 a kg at Kottayam and today it closed at `.160 a kg, while on National Multi Commodity Exchange May series declined to `.157.22 and August to `.154.51 a kg. The RSS3 grade closed at `.148.74 a kg at Bangkok, while the price of Malaysian SMR 20 closed at `.126.65 a kg.

Rubber for September delivery on the Shanghai Futures Exchange gained 1.4% to 18,980 yuan a tonne. Thai rubber free-on-board lost 3% to 79.50 baht a kg. On the Tokyo Commodity Exchange, May futures series in current session for 22nd April is trading at ¥248, June at ¥250.8, July at ¥253.3, August at ¥255.5 and the contract for delivery in September at ¥256 a kg.

Shinobu Watanabe, who is president of Chemicals & Plastics Co. business of Ube Industries Ltd. has been elected as president international of the International Institute of Synthetic Rubber Producers. Watanabe will preside over the organization's 2014 Annual General Meeting in Kyoto, Japan, and serve for the year 2013-2014.

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