Thursday, February 20, 2014

Market down, while IRM 2014 in progress


Today, the first meeting of the ‘India Rubber Meet 2014’ is being inaugurated by Vikram Srikant Kirloskar, President of the Society of Indian Automobile Manufacturers and Vice chairman of Toyota Kirloskar Motor Pvt. Ltd. at Hotel Le-Meridien Convention Centre, Kochi-Kerala, with a theme ‘Indian Rubber: New Horizons’. Global economic and rubber scenario, Chinese rubber sector, developments in artificial rubber, new trends in automobile and tyre industries are subjects which will be discussed at the event.

India's natural rubber production as well as consumption declined during April 2013 to January 2014 period. Natural rubber production was 9.4% lower and consumption 0.9% lower, compared to the same period in 2012-2013.

Rubber reserves in China almost doubled in the past six months and rising stockpiles signal ample supply from producer nations. The outlook for this market now with huge volumes of inventory seems to be bear market and is poised to deepen as the global surplus may be as much as 241,000 tonnes in 2014, extending the glut to a fourth year and stockpiles swell. Vehicle demand in China is slowing as anti-pollution and austerity campaigns spread.

Yesterday RSS4 grade at Kottayam closed at `.152.50 a kg. Today, the benchmark RSS3 grade closed at `.137.36 a kg at Bangkok, while Malaysian SMR20 closed at `.121.20 a kg. Futures on the Tokyo Commodity Exchange today dropped by the most and is expected to drop further down in short term. February 2014 futures series closed at ¥220 a kg, March at ¥219.2, April at ¥221.5, May at ¥223.9, June at ¥224.8 and the contract for delivery in July 2014 closed at ¥224.4 a kg. While on National Multi Commodity Exchange, March 2014 futures trading at `.149.22 a kg, April at `.153.57, May at `.156, June at `.157.55 and July at `.158.77 a kg, at 12.15 IST.

Read lot more in Rubber4U – 1st March 2014 issue

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