Rubber prices in India have slumped on
increasing imports and major consumers keeping away from the local market. Natural
rubber growers are concerned over daily fall in natural rubber prices, which
has reached `.159 a kg at Kottayam, lowest since 26th April 2013. According
to growers there had been a mismatch between the input cost and the price they
fetch. Growers, traders and political parties hold the steady increase in natural
rubber import by the user industry as main factor for decline in domestic prices.
International prices of rubber have fallen
too, in the wake of slowdown in the automobile industry. Since the
international prices (RSS3 at `.155.23 a kg) have
been ruling lower than the domestic prices, Indian tyre manufacturers prefer
imports. Rubber4U estimate that if the import continued at the current level,
the domestic natural rubber prices may touch `.155 a kg level,
before making a U-turn, as major consumers starts to increase their inventory
through local purchase.
On Saturday, RSS4 grade closed at `.159
a kg at Kottayam, showing a negative trend. While today, National Multi
Commodity Exchange November futures trading at `.159.15 a kg, December
at `.160.50 and January 2014 at `.162.30
a kg at 12.15 IST. RSS3 grade closed at `.155.23 a kg at
Bangkok and Malaysian SMR20 closed at `.142.54 a kg. While
Tokyo Commodity Exchange, November futures series closed at ¥246.4 a kg, December
at ¥248.7, January 2014 at ¥251.4, February at ¥254.7, March at ¥257.5 and the
contract for delivery in April 2014 at ¥260 a kg. On Tuesday most probably
market is expected to be in green.
Tommorrow, Reserve Bank of India will be taking some
measures in its monetary policy review and will have to wait and watch whether
it is going to retain CRR and repo rates or hike the rates.
Read lot more in Rubber4U – 1st November
2013 issue
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