Tuesday, January 5, 2016

Rubber at seven year low


Due to slowing manufacturing in China and U.S, rubber tumbled to the lowest since 2009, raising concern about the decelerating global growth and worsening a glut of natural rubber. On the Tokyo Commodity Exchange, futures for June delivery fell to ¥150.6 a kg, the lowest settlement for a most active contract since March 2009. The natural rubber prices are further expected to fall as a global glut is forecast to widen amid softening demand.

Stockpiles on the Shanghai Futures Exchange at the end of 2015 totaled 249,307 tonnes, the largest since at least January 2003, according to the exchange. According to the China Rubber Industry Association secretary general Mary Xu, China’s auto industry is likely to grow at an annual pace of 3.7% in the five years to 2020 compared with a rate of 6.9% in 2014.

The benchmark RSS4 grade rubber closed at `.101 a kg at Kottayam, while RSS3 grade closed at `.78.11 a kg at Bangkok and Malaysian SMR20 closed at `.73.14 a kg. On National Multi Commodity Exchange January 2016 futures closed at `.99.98 a kg, February at `.100.11 and March closed at `.101.80 a kg. On Tokyo Commodity Exchange, January 2016 futures series closed at ¥137.3 a kg, February at ¥139.7, March at ¥144.1, April at ¥147.1, May at ¥149.3 and the contract for delivery in June 2016 closed at ¥150.6 a kg. On Wednesday, most probably Tocom futures contract for delivery in June 2016 may trade in the range of ¥145.5 & ¥151 a kg.

To read Rubber4U – 15th January 2016 issue: http://rubber4u.com/Public/Abcd.pdf
For 2015-16 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf

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