Thursday, February 18, 2016

Market to remain weak


Automotive Tyre Manufacturers' Association (ATMA) the most active industry bodies representing `.50,000 crore automotive tyre industry has elected K M Mammen, chairman & managing director of MRF Ltd. as Chairman of ATMA. While Satish Sharma, president (Asia Pacific, Middle East and Africa) of Apollo Tyres Ltd. has been elected as Vice Chairman.

The moves by major natural rubber exporters to limit shipments could assist in the near-term, but a significant price movement in the coming months is not expected. The rubber market will continue to struggle with an overhang of stocks, encouraged by economic slowdown in China and weak oil prices which enhance the competitiveness of synthetic rubber. The negative economic sentiment and low petroleum prices will not support an increase in natural rubber demand.

The benchmark RSS4 grade rubber closed at `.94 a kg at Kottayam, while RSS3 grade closed at `.87.55 a kg at Bangkok and Malaysian SMR20 closed at `.75.14 a kg. On National Multi Commodity Exchange February 2016, the futures closed at `.198.02 a kg, March at `.101.13, April at `.102.43 and May 2016 at `.104.07 a kg. Tokyo Commodity Exchange February 2016 futures series closed at ¥142.6 a kg, March at ¥144.6, April at ¥147.6, May 2016 at ¥150.6, June at ¥152.4 and the contract for delivery in July 2016 closed at ¥152.6 a kg.

To read Rubber4U – 1st March 2016 issue: http://rubber4u.com/Public/Abcd.pdf
For 2015-16 Rubber Forecast: http://rubber4u.com/Public/RForecast.pdf

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