Wednesday, February 11, 2015

Interventions showing the results


Thailand’s interventions in the natural rubber market are propping up prices and keeping supplies tight. The global benchmark futures on Tokyo Commodity Exchange posted gains this week, hitting a one-month high of ¥218.5 a kg. The benchmark Tocom rubber contract for July delivery ended down by 1% or ¥2.1 per kg at ¥212.4 per kg, on Tuesday.

According to Rubber Trade Association of Japan, crude rubber inventories at Japanese ports stood at 12976 tonnes as of 20th January, down 0.5% from 10 days earlier figure. While rubber inventories in the warehouses monitored by SHFE rose 0.1% last week to 164821 tonnes.

The United States is set to slap more duties on imports of tyres from China after the Department of Commerce determined they were sold too cheaply in the United States.

India's natural rubber output in January 2015 dropped to 60,000 tonnes compared to 89,000 tonnes in January 2014, as some farmers curtailed tapping due to lower prices. While the consumption during the month rose only 0.78% to 84,000 tonnes from 83,345 tonnes in January 2014, prompting tyre makers to increase imports by 10.65% to 30,441 tonnes from 27,511 tonnes.

The benchmark RSS4 grade rubber closed at `.137.10 a kg at Kottayam, while RSS3 grade closed at `.114.23 a kg at Bangkok and Malaysian SMR20 closed at `.86.47 a kg. On National Multi Commodity Exchange February 2015 futures closed at `.125.07 a kg, March at `.125.75, April at `.126.67 and May at `.129.40 a kg. On Tokyo Commodity Exchange, February 2015 futures series closed at ¥212 a kg, March at ¥213.6, April at ¥215.4, May at ¥215.7, June at ¥214.8 and the contract for delivery in July 2015 closed at ¥212.4 a kg.

To read Rubber4U – 1st February 2015 issue: http://rubber4u.com/Public/Abcd.pdf
For 2014-15 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf

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