Thursday, June 18, 2015

Supply is continuing to outstrip demand


Oil prices fell as the U.S. dollar rose and the energy market's focus shifted back to the global oversupply of crude. Oil benchmarks have rallied off their lows set in late March, but the recovery has lost steam, with prices trading in a narrow range around $60 a barrel since early May. It is very difficult to see how the massive oversupply situation is going to reverse in the short to medium term. The International crude oil price of Indian Basket declined 1.70% to US$ 61.76 a barrel on 15th June 2015 as against US$ 62.83 a barrel on 12th June 2015.

Weakening demand from the Chinese automotive sector and increased availability of supply seems to be snuffing out the recent recovery in natural rubber prices.
The Kerala government has approached the Centre seeking `.500 crore for providing assistance under the price support subsidy scheme to the struggling natural rubber growers. In this regard, state finance minister KM Mani, who met Union Finance Minister Arun Jaitley, has submitted a memorandum. The CPM staged dharnas in front of the district collectorates in protest against the fall in rubber prices and the exclusion of Kerala farmers from the subsidy scheme of the Rubber Board.

The benchmark RSS4 grade rubber closed at `.133 a kg at Kottayam, while RSS3 grade closed at `.129.50 a kg at Bangkok and Malaysian SMR20 closed at `.100.95 a kg. On National Multi Commodity Exchange July 2015 futures closed at `.135.04 a kg, August at `.135.95 and September at `.135.85 a kg. On Tokyo Commodity Exchange, June 2015 futures series closed at ¥216.3 a kg, July at ¥219, August at ¥221.3, September at ¥222.8 October at ¥225.1 and the contract for delivery in November 2015 closed at ¥228.4 a kg.

To read Rubber4U – 15th June 2015 issue: http://rubber4u.com/Public/Abcd.pdf

No comments:

Post a Comment