Rubber to stay under pressure

China’s GDP grew by 7.7% in line with last year and in 2014, consumption of natural rubber in China could grow by 6.7% to 3.95 million tonnes, while synthetic rubber demand is expected to rise by 6.35% to 4.35 million tonnes, as an expansion in auto industry will boost demand from tyre. But continuing slowdown in the European and US economies apart, Chinese withdrawal from the global market had fuelled the current fall in natural rubber price. Global prices of natural rubber are likely to stay under pressure in the coming days due to increasing supply.

Yesterday, RSS4 grade at Kottayam closed at `.148 a kg, while National Multi Commodity Exchange, March 2014 futures closed at `.147.08 a kg, April at `.152.07, May at `.155.03, June at `.155.93 and July at `.154.87 a kg. On Friday, the benchmark RSS3 grade closed at `.136.19 a kg at Bangkok, while Malaysian SMR20 closed at `.119.12 a kg. Futures on the Tokyo Commodity Exchange, February 2014 futures series closed at ¥218.8 a kg, March at ¥222.3, April at ¥223.7, May at ¥226.5, June at ¥227.2 and the contract for delivery in July 2014 closed at ¥226.9 a kg.

Around 700 delegates from 30 countries have participated in India Rubber Meet 2014 and the next meet is scheduled to be held in Kochi, in March 2015.

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